Chevron buys majority of huge hydrogen storage project in Utah
Hydrogen tanks. Source: US Office of Energy Efficiency & Renewable Energy
US energy giant Chevron (NYSE:CVX) has acquired a majority stake in the Advanced Clean Energy Storage (ACES) project, which is set to create the world’s largest industrial green hydrogen production and storage hub.
The oil major announced on Tuesday it has clinched a deal with private equity firm Haddington Ventures to acquire 100% of Magnum Development LLC, giving it majority control of the latter’s joint venture with Mitsubishi Power Americas LLC. The joint business, dubbed ACES Delta LLC, is behind the ambitious project that aims to turn renewable energy into green hydrogen for seasonal storage in solution-mined salt caverns.
The value of Chevron’s investment, aligned with the group’s goal to pursue lower carbon energy solutions, was not disclosed. According to Bloomberg, the transaction has provided it with a 78% interest in the huge scheme, which will eventually enable the storage of around 300 GWh of clean energy in the form of hydrogen.
The first ACES stage envisages the deployment of 220 MW of high-pressure alkaline electrolysers to produce up to 100 metric tonnes of hydrogen per day. With construction underway, the plan is scheduled to kick off commercial operations in the middle of 2025, with its output planned to fuel a hydrogen-capable gas turbine combined cycle power plant owned by the Intermountain Power Agency. Options to supply hydrogen to the utility, transportation and industrial sectors in the western US are reviewed, as well.
“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,” said Austin Knight, vice president Hydrogen, Chevron New Energies.
Last summer, ACES secured a USD-504.4-million (EUR 469.3m) loan guarantee from the US Department of Energy’s Loan Programs Office.
Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.