Chevron joins Magnum Development and Mitsubishi Power in Hydrogen Joint Venture

The current hydrogen project will produce, store and transport green hydrogen at utility scale for power generation, transportation and industrial applications in the western United States

Chevron joins Magnum Development and Mitsubishi Power in Hydrogen Joint Venture

On 9th September 2021, Chevron U.S.A. Inc., announced that it has agreed on a framework to acquire an equity interest in ACES Delta, LLC (ACES Delta), a joint venture between Mitsubishi Power Americas Inc. (Mitsubishi Power) and Magnum Development, LLC. The acquisition will be completed via company’s new Chevron New Energies division. Magnum owns the Advanced Clean Energy Storage project. The current hydrogen project will produce, store and transport green hydrogen at utility scale for power generation, transportation and industrial applications in the western United States.

ACES Delta is co-owned by Magnum, a Haddington Ventures portfolio company, and Mitsubishi Power. Chevron, Magnum, and Mitsubishi Power are working on a definitive documentation to outline Chevron’s participation in the joint venture company.

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.”

Paul Browning, President and CEO of Mitsubishi Power Americas, said, “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. 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. Together with our customers and partners, we are creating a Change in Power.”

The joint venture is located in Delta, Utah, adjacent to the Intermountain Power Plant, which will use green hydrogen to produce electricity with lower lifecycle carbon emissions. The expansion of green hydrogen supply to other Western states and the construction of connecting hydrogen infrastructure to build a regional hydrogen production, transportation and supply network are part of the projects anticipated in near future.

Chevron is working to build hydrogen and supporting technology demand in heavy-duty transportation and industrial sectors in which greenhouse gas emissions are hard to abate.