US supermajor Chevron plans to acquire equity interest in ACES Delta, a joint venture between Mitsubishi Power and Magnum Development, a Haddington Ventures portfolio company, to produce green hydrogen out of Delta, Utah.
Jeff Gustavson, president of Chevron New Energies, said: “Chevron New Energies was created to grow new competitive business lines in areas like hydrogen.
“The potential to partner with Mitsubishi Power and Magnum Development on the Advanced Clean Energy Storage project presents an exciting opportunity that would bring together our unique strengths and would provide a scalable platform to supply our customers with affordable, reliable and ever-cleaner energy.”
A Chevron spokesperson said the deal is likely to be finalised in the fourth quarter 2021 or first quarter 2022.
The proposed hub would use 1000 megawatts of electrolysis to produce 450 metric tonnes of green hydrogen per day. The hydrogen would be stored in salt caverns that can hold more than 5500 metric tonnes of hydrogen.
Storing the hydrogen in the caverns allows it to be dispatchable and cost effective. The hub could potentially grow to become a regional supplier of hydrogen as pipelines are built out.
“For several years, we’ve been working with early adopters of green hydrogen in the power sector that have easy access to salt domes or existing hydrogen infrastructure, such as the Intermountain Power Agency and Magnum Development,” said Paul Browning, president and CEO of Mitsubishi Power Americas.
“Now it’s time to connect massive geologic hydrogen storage in Delta, Utah, to power, transportation and industrial users throughout the western United States. Chevron’s footprint and expertise in the transportation and industrial sectors make them an ideal partner for this next phase of expansion,” he added.
For more information visit www.chevron.com