Exxon enemy engine No. 1 for the construction of fossil fuel systems with chevron

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Motor No. 1, the hedge fund, which defeated Exxonmobil in a struggle for his approach to climate change, is made up of the competitor of the Supermajor-Chevron to build fossil fuel systems in order to meet the increasing artificial intelligence-powered electricity requirements.

The former activist investor said on Tuesday that he was a joint venture with Chevron and approved a partnership with the energy company GENOVA to develop natural gas power plants under a fast timeline.

The company has been carried out four years after Motor No. 1 had launched one of the Wall Street War Street wars against Exxon, which was argued that the oil major was exposed to an “existential business risk” by incorporating its future Holded fossil fuels.

At the time when the hedge fund claimed that Exxon had not adequately considered that oil and gas demand could decrease, the manufacturer told a “credible plan to protect the value in an energy transition”.

Although only 0.2 percent of the shares of Exxon, Motor No. 1 won three seats on its board to send shock waves across America and become an emblematic victory of the environmental, social and governance movement.

Chris James, founder and Chief Investment Officer from Motor No. 1 said that the investment with Chevron has his former Exxon campaign.

“This is not a pivot point. The Exxon campaign focused on governance and capital allocation to create value for shareholders. It was not about ideology or fossil fuels or renewable energies, ”said James the Financial Times.

“This partnership with Chevron and GE is about assigning capital in an economy that is another industrialization and needs more power dramatically. . . This will lead to added value for shareholders. ”

The companies are planning to provide power plants with data centers and to deliver up to four gigawatts of electricity to deliver up to 3.5 million houses with electricity.

The investment that analysts appreciate up to $ 8 billion is part of a race of energy companies to use the increase in need for promotion for forecasting for the introduction of AI calculation centers.

“This is the beginning of these AI wars,” said James, referring to the race between China and the USA to use a technology that believes their booster is changing.

“We all know that China has an enormous amount of power available. But if we really want to carry out a digital industrialization of the United States, we have to make these investments on a scale, ”said James.

The decision of Engine No. 1 comes when Wall Street and large companies in the United States defeated a steady withdrawal from ESG and other progressive programs that President Donald Trump and Republicans have carried out.

James, a veteran of the hedge fund industry, who has had a fortune as a technology and biotech investor since the Exxon campaign. In 2023, he announced that the hedge fund would bring $ 780 million into the base metal business of the Brazilian miners Vale and the FT would be informed that it never considered himself as an activist investor.

“As an investor and activism, I see myself a tool of the last way out, not a strategy,” he said.

Investors stated that the gas systems would be designed with the flexibility for the integration of CO2 versions and stores -a technology that has not yet reached fully commercial and technical feasibility.

The joint venture of the gas system also marks a strategic shift for Chevron, which enters the electricity business a few months after the explanation of plans for the construction of gas power plants for the belly of AI calculation centers.

The announcement on Tuesday was given a day after the tech shares in the news had dropped together that China had developed a cheaper AI model that needed far less electricity than the energy-intensive AI systems of the Silicon Valley.

“We still see that the growth of electricity demand is only significant in the rest of this decade, not to mention him,” said Jeff Gustavson, President of Chevron New Energy.

“AI will be the big driver, but there are other drivers: Cerpting the US production and only general electrification in persecution of a future with lower carbon energy.”

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