Chevron Agrees on Framework to Join Hydrogen Joint Venture with Magnum Development and Mitsubishi Power
SAN RAMON, Calif. / LAKE MARY, Fla. / HOLLADAY, Utah, Sep 10, 2021 - (JCN Newswire) - Chevron U.S.A. Inc., through its Chevron New Energies division, announced it has agreed on a framework to acquire an equity interest in ACES Delta, LLC (ACES Delta), which is a joint venture between Mitsubishi Power Americas Inc. (Mitsubishi Power) and Magnum Development, LLC (Magnum) that owns the Advanced Clean Energy Storage project. This project will 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 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 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."
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."
"I look forward to the opportunity to collaborate with Chevron as a strategic partner in our ACES Delta venture. Chevron's participation will add tremendous value as we develop a world class - and world's largest - green hydrogen production and storage facility," said Craig Broussard, President, CEO and Board Chairman of Magnum Development, LLC. "Combined with Chevron's in-depth capabilities, the ACES Delta facility will serve as a platform to deliver on our shared vision and continue building our robust pipeline of high quality, actionable projects that will help decarbonize multiple sectors of the U.S. economy."
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.
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