Chevron Acquires Majority Stake in the Advanced Clean Energy Storage Hydrogen Project in Delta, Utah
- Chevron's acquisition of Magnum Development and partnership with Mitsubishi Power to develop the Advanced Clean Energy Storage project is a positive move for the company. The project aims to convert renewable energy into hydrogen and utilize salt caverns for energy storage. The first project is under construction and expected to enter commercial-scale operations in mid-2025. Chevron seeks to leverage this project to provide affordable, reliable, and cleaner energy to customers in the western region of the United States.
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The Advanced Clean Energy Storage project plans to use electrolysis to convert renewable energy into hydrogen and will utilize solution-mined salt caverns for seasonal, dispatchable storage of the energy. The first project, designed to convert and store up to 100 metric tons per day of hydrogen, is under construction and is expected to enter commercial-scale operations in mid-2025 to support the Intermountain Power Project’s “IPP Renewed” initiative. Several other opportunities for the project to produce and supply hydrogen to customers in the utility, transportation and industrial sectors in the western region of
“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,” said Austin Knight, vice president, Hydrogen, Chevron New Energies. “We seek to leverage the unique strengths of each partner to develop a large-scale, hydrogen platform that provides affordable, reliable, ever-cleaner energy and helps our customers achieve their lower carbon goals.”
As part of broader efforts to pursue lower carbon energy solutions, Chevron New Energies 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 transportation, power, and industrial sectors where greenhouse gas emissions are hard to abate.
“Reaching this milestone in the development of our hydrogen project will not only have significant benefits to the western
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“I look forward to this partnership with Chevron in the ACES Delta mission. Chevron will add tremendous strategic value as we develop a hydrogen production and storage facility,” said Craig Broussard, president, CEO and board chairman of Magnum Development.
“Haddington Ventures is very excited to see Chevron coming on board as the new majority owner at ACES Delta,” said John Strom, managing director, Haddington Ventures. “Having been the primary financial sponsor behind this key energy hub since 2008, we believe this transaction will accelerate lower carbon intensity solutions that reduce emissions in the western
Citigroup Global Markets, Inc. served as financial advisor to Chevron. Jefferies LLC served as financial advisor to Haddington.
About Chevron
Chevron is one of the world’s leading integrated energy companies. We believe affordable, reliable and ever-cleaner energy is essential to enabling human progress. Chevron produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance our business and the industry. We aim to grow our traditional oil and gas business, lower the carbon intensity of our operations and grow new lower carbon businesses in renewable fuels, hydrogen, carbon capture, offsets and other emerging technologies. More information about Chevron is available at www.chevron.com.
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Chevron
Kelly Russell
KellyRussell@chevron.com
(936) 333-4077
Source: Chevron Corporation