Texaco Buys Stake in Energy Conversion Company
Texaco Inc. on Tuesday closed its purchase of a 20 percent equity stake in fuel cell and alternative energy company Energy Conversion Devices Inc. for $67.3 million.
Texaco, the third-largest U.S. oil company, announced its intent to purchase the stake in Troy, Mich.-based Energy Conversion Devices at the beginning of May in a step toward the development and storage of hydrogen energy, a "clean" energy that could become an alternative to petroleum.
In a statement Tuesday, Texaco said its interest in Energy Conversion Devices will be managed by subsidiary Texaco Energy Systems Inc., which was launched last year to advance Texaco's fuel conversion development.
Texaco's decision to participate in hydrogen energy development with Energy Conversion Devices comes three months after the company quit the Global Climate Coalition, a group which opposes the Kyoto treaty's stance against global warming, a recent Reuters report said.