Chevron Technology Ventures has launched its third fund to invest in renewable energy technologies with a $500 million commitment, as oil majors look to diversify their business in the face of pressure to reduce their emissions.

Chevron, together with other global oil and gas companies, has set varying targets to reduce greenhouse gas emissions from their operations and the combustion of the products they sell.

Similar to the previous two funds, the Future Energy Fund III will focus on innovations in industrial decarbonisation, emerging mobility, energy decentralisation and the growing circular carbon economy. The new fund also aims to expand investment in the areas of novel low carbon fuels, advanced materials and transforming carbon to higher value products.

Chevron Technology Ventures launched the first Future Energy Fund in 2018 followed up by a second in 2021 for a total $400 million commitment and it has so far invested in more than 30 companies.