Chevron USA Inc., through its Chevron New Energies division, has agreed on a framework to acquire an equity interest in ACES Delta LLC, a joint venture of Mitsubishi Power and Magnum Development, which owns the Advanced Clean Energy Storage project. This project aims to produce, store and transport green hydrogen at utility scale for power generation, transportation and industrial applications in the western United States.
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. Future anticipated projects include the expansion of green hydrogen supply to other Western states and the construction of a connecting hydrogen infrastructure to build a regional hydrogen production, transportation and supply network. Chevron is working to build demand for hydrogen – and the technologies that support it – in the heavy-duty transportation and industrial sectors in which greenhouse gas emissions are hard to abate.
“Chevron New Energies was created to grow new competitive business lines in areas like hydrogen,” said Jeff Gustavson, president of Chevron New Energies. “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.”
ACES Delta is co-owned by Magnum, which is a Haddington Ventures portfolio company, and Mitsubishi Power. Chevron, Magnum and Mitsubishi Power are negotiating definitive documentation outlining Chevron’s participation in the joint venture. The terms of this transaction are subject to the negotiation of definitive agreements, and closing of the transaction will be subject to customary closing conditions.
