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Chevron (NYSE:CVX) Partners Mitsui Oil on Low-Carbon Geothermal Project

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Energy company Chevron announced a collaboration with Japan’s leading oil exploration company MOECO, bringing a new approach to geothermal power generation.

Integrated energy giant Chevron (NYSE:CVX) signed an agreement with Mitsui Oil Exploration (MOECO) to enhance Japan’s advanced geothermal power generation capacity by leveraging the Advanced Closed Loop (ACL) technology. The partnership opens the possibility of more joint projects using ACL for low-carbon solutions across the globe.

Notably, conventional geothermal projects utilize steam turbines, which require areas of high temperatures. However, the ideal temperature for these turbines is often found in locations that fail to meet geological requirements.

In this regard, the alternative technology of ACL can help reach geothermal resources at a wider range of geologies and temperatures.

Is CVX a Buy or Sell?

Earlier this month, Piper Sandler analyst Ryan Todd reinforced a Buy rating on the stock and raised the price target to $190 from $189. Chevron’s near-record distillate margins led Todd to see solid room for refining estimates to increase this winter and through 2023.

On Wall Street, Chevron has a Moderate Buy consensus rating, supported by 10 Buys and five Holds. The average price target for CVX currently stands at $178.73, which indicates about 24% upside from current levels of prices.

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