Chevron arm launches $500 million fund to invest in low carbon technologies

April 16 (Reuters) - Chevron's venture capital arm launched on Tuesday 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.

Like the previous two funds, the Future Energy Fund III will focus on innovations in industrial decarbonization, emerging mobility, energy decentralization and the growing circular carbon economy, Chevron Technology Ventures said.

It added that 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 invested in more than 30 companies.

The world's biggest oil and gas companies have set varying targets to reduce greenhouse gas emissions from their operations and the combustion of the products they sell. (Reporting by Roshia Sabu in Bengaluru; Editing by Alan Barona)