Chevron To Be Majority Owner Of World's Largest Hydrogen Production Facility - OilPrice.com
Chevron To Be Majority Owner Of World's Largest Hydrogen Production Facility | OilPrice.com
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U.S.-based Chevron Corp. will soon be the majority owner of what will be the world’s largest hydrogen production and storage facility as it branches out past fossil fuels.
Chevron New Energies—a division of Chevron that has a goal of “helping customers meet their lower carbon ambitions and reduce the carbon intensity of our operations”--purchased a 78% stake in a hydrogen production and storage project in Utah from a private equity firm, Chevron said on Tuesday in a press release.
Chevron completed a deal with Haddington Ventures for a 100% stake in Magnum Development LLC, which gives Chevron a majority interest in ACES Delta LLC—a JV between Mitsubishi Power Americas and Magnum Development.
ACES Delta is the developer of the Advanced Clean Energy Storage project in Delta, Utah, which will use electrolysis to convert renewable energy into hydrogen, “and will utilize solution-mined sale caverns for seasonal, dispatchable storage of the energy,” the press release said.
The first project, which is currently under construction, will convert and store 100 metric tons of hydrogen per day. Commercial-scale operations will be reached in mid-2025 in support of the Intermountain Power Project’s initiative.
As we continue to pursue lower carbon energy solutions, we are excited to move forward with the Advanced Clean Energy Storage hydrogen project, through our acquisition of Magnum Development and partnership with Mitsubishi Power, to build on Chevron’s 75-year history in Utah,” Austin Knight, VP, Hydrogen, Chevron New Energies said.
Mitsubishi Power hopes the project will “serve as a blueprint for future hydrogen opportunities,” on top of having significant benefits to the western U.S. population.
Chevron New Energies already operates Gorgon, one of the world’s largest integrated CCS projects that started in 2019.
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By Julianne Geiger for Oilprice.com
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