Chevron U.S.A. Inc., through its Chevron New Energies division, has acquired 100% of Magnum Development, LLC, marking a significant step towards renewable hydrogen production and storage.
This acquisition also includes a majority interest in ACES Delta, LLC, a joint venture between Mitsubishi Power Americas, Inc., and Magnum Development, focused on the Advanced Clean Energy Storage project in Delta, Utah.
The Advanced Clean Energy Storage project aims to revolutionize the energy storage landscape by utilizing electrolysis to convert renewable energy into hydrogen and store it in solution-mined salt caverns. This innovative approach provides seasonal, dispatchable storage of renewable energy, addressing one of the key challenges in transitioning to clean power sources.
The first phase of the project is already underway, with construction in full swing. It’s designed to convert and store up to 100 metric tons of hydrogen per day, and it’s slated to begin commercial-scale operations by mid-2025. This development aligns with the Intermountain Power Project’s “IPP Renewed” initiative, which focuses on transitioning to cleaner energy sources.
One of the project’s standout features is its potential to supply hydrogen to a range of sectors, including utilities, transportation, and industry, across the western United States. This is a significant step towards reducing carbon emissions in regions where it’s often challenging to do so.
Chevron’s involvement in this venture reflects its commitment to cleaner, more sustainable energy solutions. The company, with a remarkable 75-year history in Utah, is keen to leverage its expertise to create a large-scale hydrogen platform that offers affordable, reliable, and environmentally friendly energy. This aligns with Chevron New Energies’ broader efforts to enhance demand for lower carbon-intensity hydrogen, making it a commercially viable alternative in sectors where greenhouse gas emissions are difficult to reduce.
Mitsubishi Power, Chevron’s partner in this endeavor, sees this project as a blueprint for future hydrogen opportunities. The company’s senior vice president of Hydrogen Infrastructure, Michael Ducker, emphasizes the potential for rapid expansion in hydrogen supply, catalyzed by Chevron’s involvement. Together, they aim to usher in a cost-competitive market for emerging lower-carbon solutions.
Utah Governor Spencer Cox lauds the collaboration, stating that it demonstrates the state’s commitment to clean energy innovation. Utah has long been at the forefront of renewable energy initiatives, and this partnership further solidifies its reputation as a hub for sustainable solutions.
Craig Broussard, President, CEO, and Board Chairman of Magnum Development, expresses optimism about Chevron’s involvement in the ACES Delta mission. Chevron’s strategic value, combined with Magnum Development’s expertise, is poised to drive forward the hydrogen production and storage facility.
Chevron Joins Forces with Trafigura and The Papé Group to Supercharge Hydrogen Expansion
Chevron, in partnership with Trafigura and The Papé Group, has made a strategic investment in OneH2, a leading hydrogen distribution and fueling firm in the U.S. Although financial specifics remain undisclosed, the objective is crystal clear: accelerate the development and deployment of mid-scale hydrogen generators and fuel distribution solutions, ultimately bolstering the adoption of low-carbon alternatives. Why does this matter for Chevron? Hydrogen, recognized for its cleanliness, efficiency, and versatility, holds immense potential in decarbonizing various sectors globally. Chevron is committed to advancing hydrogen technologies as part of its strategy to curtail emissions and fulfill the world’s surging energy demands.
