Chevron bids for stake in climate-tech incubator

Chevron Photo: Reuters Jonathan Bachman

Energy major Chevron is part of a consortium of five companies bidding in the Israel Innovation Authority's tender to operate a climate-tech incubator.

Energy major Chevron is part of a consortium of five companies bidding in the Israel Innovation Authority's tender to operate a climate-tech incubator, sources inform "Globes." The incubator is meant to house startups developing renewable energy and other technologies designed to reduce carbon emissions, while Chevron is one of the world's largest contributors to carbon emissions.

So far at least three consortia have bid for the climate-tech incubator and the winning consortium will receive funding from the government financed Israel Innovation Authority of up to 85% of their investments in the incubators startups. Some sources say that over 10 consortia have bid for the incubator.

Chevron has joined the consortium led by investment company Capital Nature, which formerly operated the Israel Innovation Authority's renewable energies technology incubator until its concession expired last year.

Chevron, which acquired Noble Energy last year, operates the Leviathan and Tamar offshore natural gas fields in which it has 25% and 39.66% stakes respectively.

One source in the industry told "Globes" One of the red lights that lit up for us is how can an organization like Chevron apply to receive gifts from the state beyond what it has already received and how is it possible that an organization that is meant to be an example of weaning off of fossil fuels get its substantial income from them. Capital Nature has been supported by the Israel Innovation Authority for almost a decade and Chevron has what the state would call 'deep pockets.' Chevron is a major part of this consortium and they are most proud of this that they have succeeded in bringing them to join."

Israel Innovation Authority said, "The competitive procedure is underway and the response is very high. The procedure is managed according to rules and professional threshold conditions that are detailed in the incentives track. The procedure does not pre-define the main areas of activity of the incubators and as of now there are a range of offers from different sectors. We do not restrict ahead of time this company or that from bidding in the competitive procedure and ultimately we will choose the best proposals for innovation and the Israeli economy."

Chevron said, "Chevron sees innovation as a vital means for providing energy needs which are growing worldwide alongside coping with the challenges stemming from climate change. The company is promoting a future with reduced carbon levels by cutting the intensity of emissions from its gas and oil producing activities and investing in developing reduced carbon energy solutions, while we continue each day to work to develop sustainable, cheap, reliable and cleaner energy sources that allow human progress worldwide. Chevron sees collaboration with innovative Israeli entrepreneurs as a way to create new opportunities for Chevron and all interested parties."

Capital Nature said, "We are prohibited from discussing the details of the tender and its participants. All the organizations that have joined together for the tender have put at the top of their agenda the issue of renewable energy and technologies that reduce greenhouse gas emissions and are investing hundreds of millions in the sector. The prevalent environmental approach in all countries today is to channel traditional energy companies into becoming cleaner in order to beat the climate crisis."

Published by Globes, Israel business news - en.globes.co.il - on January 6, 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

Chevron Photo: Reuters Jonathan Bachman
Chevron Photo: Reuters Jonathan Bachman
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