The Chevron New Energies division of Chevron USA agreed with Haddington Ventures to acquire Magnum Development, which owns a majority interest in the Advanced Clean Energy Storage (ACES) joint venture, with Mitsubishi Power Americas.
The joint venture’s ACES project, in Delta, in the US state of Utah, will use excess wind and solar energy during off-peak hours to power electrolysis and produce green hydrogen and oxygen.
Chevron said the ACES hub would nearly double the global installed capacity for electrolysis. The first project, designed to convert and store up to 100t/d of hydrogen, is under construction and is expected to enter commercial-scale operations in mid-2025.
The hub will use salt caverns for seasonal storage of the hydrogen produced. Initially, it will support an initiative by the Intermountain Power Project to replace a coal-fired power plant with gas turbines that can be fuelled with a blend of natural gas and 30% hydrogen. By 2045, it is intended that the Intermountain plant will be fully fuelled by hydrogen.
Michael Ducker, senior vice president of hydrogen infrastructure for Mitsubishi Power, said he expected to expand hydrogen supply more quickly thanks to Chevron New Energies’ involvement.
“Together, we are investing in the future of hydrogen, helping to create a viable, cost-competitive market for emerging lower-carbon solutions,” Ducker said.
Chevron said it is working to enhance demand for lower carbon intensity hydrogen – and the technologies that support cost-effective supply – as a commercially viable alternative in the transport, power and industrial sectors, where greenhouse gas emissions are hard to abate.
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