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In a significant step toward decarbonization and reducing methane slip, Chevron Shipping Company LLC, a subsidiary of Chevron Corporation CVX, has associated with a global leader in LNG technology, Wärtsilä Oyj Abp WRTBY, to convert one dual-fuel engine to spark-gas operated in six of its LNG carriers. This conversion will greatly reduce greenhouse gas emissions, leading to a low-carbon future and a better environment.
Importance of Converting the Engines to Spark Gas Operated
Although methane, which escapes into the atmosphere during the combustion of LNG, remains in the atmosphere for a shorter duration than carbon dioxide, it has the potential to trap 25-30 times more heat over 100 years. Therefore, to reduce its impact on climate change, lowering methane slip has become critical for the marine industry. To reduce this methane emission, six of Chevron’s LNG carrier engines will be converted to spark gas ones.
Chevron, carrying a Zacks Rank #3 (Hold) currently, is taking these bold steps to achieve its global decarbonization targets and to support its sustainability agenda. This partnership sets a new industry standard for other operators as this deal is also described as “marine industry first.”
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The Future of LNG and Marine Engines
Finland-based Wartsila has a competitive edge over other technology-providing companies as it has a vast experience of nearly three decades in LNG technology to develop advanced solutions for the reduction of emissions. The company can not only retrofit the existing vessels but also build new solutions to eliminate the emissions. Looking forward, initiatives of this kind will become increasingly significant for the marine industry as they need to adhere to tight environmental regulations.
Two other energymajors that are active in the energy transition race are Shell plc SHEL and Eni SpA E.
Shell has an ambitious target of becoming a net-zero emissions energy player by 2050. By 2030, the integrated energy company plans to lower absolute emissions by 50%.
Eni has been building a full set of decarbonized products and services for clients to achieve carbon neutrality by mid-century. Even though the energy business scenario is challenging, Eni’s efficient exploration keeps it highly competitive.
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Chevron Corporation (CVX) : Free Stock Analysis Report