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In a significant move towards promoting clean energy, Chevron Corp has recently announced its acquisition of a major stake in the world’s largest proposed hydrogen storage facility. Located in Delta, Utah, this project, known as ACES Delta, signifies a monumental stride in the transition to eco-friendly energy solutions.
Behind this venture are Mitsubishi Power Americas and Magnum Development, initially forming a joint venture that caught Chevron’s attention. One noteworthy detail about ACES Delta is its historic achievement of obtaining the first U.S. Department of Energy loan dedicated to clean energy in almost ten years. The loan amounted to an impressive $504 million.
While financial specifics remain confidential, Chevron’s objective with this acquisition is crystal clear. As Austin Knight, vice president of hydrogen at Chevron New Energies, articulated, Chevron aspires to establish “a large-scale, hydrogen platform that provides affordable, reliable, ever-cleaner energy.”
Hydrogen’s potential as a game-changing energy source is undeniable. Not only does it produce mere water vapor when used as fuel, eliminating harmful greenhouse gas emissions, but it also offers energy storage capabilities. This ensures a balance in supply and demand for power grids throughout the year.
A standout feature of this facility is its innovative approach to hydrogen production. Harnessing the power of wind and solar, the plant will employ electrolysis to produce hydrogen. Following production, the hydrogen will be stored safely in solution-mined salt caverns.
Expectations are high for this acquisition. The facility’s inaugural project, which aims to convert and store an impressive 100 metric tons of hydrogen daily, is already underway. By mid-2025, this project is projected to operate on a commercial scale.
To put things into perspective, global production of low-emissions hydrogen was a mere 2,700 tonnes daily in 2021. The majority of this came from plants relying on fossil fuels with carbon capture. Chevron itself is no stranger to hydrogen, producing around 1 million tonnes annually. With an investment plan of approximately $1.25 billion annually until 2028, Chevron is fully committed to minimizing emissions and championing lower carbon fuels like hydrogen.