Chevron Gains Dominant Position in Hydrogen Venture through Majority Stake

Chevron USA's New Energies division has entered into an agreement with Haddington Ventures to acquire Magnum Development, a company that holds a controlling interest in the Advanced Clean Energy Storage (ACES) joint venture, along with Mitsubishi Power Americas. This strategic move underscores Chevron's commitment to advancing its presence in the renewable energy sector and contributing to the development of sustainable solutions.

The ACES project, situated in Delta, Utah, within the United States, is the primary focus of the joint venture. It aims to harness surplus wind and solar energy during off-peak periods for the purpose of electrolysis, thereby generating green hydrogen and oxygen.

Chevron has highlighted the significance of the ACES hub, noting that it is poised to substantially augment the global installed capacity for electrolysis. The initial project, currently under construction, is designed to convert and store up to 100 metric tons per day of hydrogen. It is projected to commence full-scale commercial operations by mid-2025. The unique aspect of this endeavor lies in its use of salt caverns for the seasonal storage of the hydrogen produced, providing a reliable and efficient storage solution.

The ACES hub's immediate objective is to support the Intermountain Power Project's initiative, which involves the replacement of a coal-fired power plant with gas turbines capable of utilizing a blend of natural gas and 30% hydrogen. By the year 2045, the ultimate goal is to have the Intermountain plant entirely powered by hydrogen. This transition is a significant step towards reducing greenhouse gas emissions and embracing cleaner energy sources.

Michael Ducker, Senior Vice President of Hydrogen Infrastructure for Mitsubishi Power, expressed optimism regarding the accelerated expansion of hydrogen supply as a result of Chevron New Energies' participation in the venture. He highlighted the shared commitment to investing in the future of hydrogen and fostering a competitive market for emerging lower-carbon solutions.

Chevron's strategic approach to this acquisition aligns with its broader mission to stimulate demand for lower-carbon intensity hydrogen. The company recognizes the importance of hydrogen as a viable, cost-competitive alternative in sectors such as transportation, power generation, and industrial processes, where reducing greenhouse gas emissions presents significant challenges. By actively engaging in projects like ACES, Chevron aims to play a pivotal role in driving forward sustainable energy solutions and facilitating the transition to a more environmentally friendly future.