Chevron to build California carbon capture plant with Microsoft, Schlumberger

(Reuters) - Chevron Corp is partnering with Microsoft Corp, oilfield services firm Schlumberger NV and privately held Clean Energy Systems to build a carbon capture plant in California, as the U.S. oil major expands investments in renewable technology.

Fossil fuel companies have faced increased pressure in recent years to reduce emissions, spend more on low-carbon energy and disclose the impact their production has on climate change.

Chevron said on Thursday the plant, located in the city of Mendota, will convert agricultural biomass to electricity, and almost all the carbon captured in the conversion of agricultural waste would be stored underground.

The venture adds weight to plans outlined by California's Air Resources Control Board last month to start phasing out all agricultural waste burning in the valley by 2025.

The companies expect to start engineering and design work on the plant immediately, with a final investment decision next year, Chevron said in a statement.

Once completed, the companies expect the plant will use about 200,000 tons of agricultural waste and remove around 300,000 tons of carbon dioxide every year.

(Reporting by Shariq Khan in Bengaluru; Editing by Ramakrishnan M.)