Chevron acquires majority stake in the advanced clean energy storage hydrogen project in Delta, Utah
Chevron U.S.A. Inc., a subsidiary of Chevron Corporation, has announced the acquisition of a majority stake in the Advanced Clean Energy Storage hydrogen project in Delta, Utah. The acquisition was made through Chevron New Energies, the company’s division focused on clean energy solutions.
Chevron has acquired 100 percent of Magnum Development, LLC, the parent company of ACES Delta, LLC, which is a joint venture between Mitsubishi Power Americas, Inc. and Magnum Development. ACES Delta is responsible for developing the Advanced Clean Energy Storage project in Delta, Utah.
The Advanced Clean Energy Storage project aims to convert renewable energy into hydrogen using electrolysis. It will utilise solution-mined salt caverns for seasonal and dispatchable storage of the energy. The first phase of the project, which is currently under construction, is designed to convert and store up to 100 metric tonnes per day of hydrogen. It is expected to start commercial operations in mid-2025 and will support the Intermountain Power Project’s “IPP Renewed” initiative.
In addition to supporting the Intermountain Power Project, ACES Delta is also exploring opportunities to produce and supply hydrogen to customers in the utility, transportation, and industrial sectors in the western region of the United States.
Chevron’s acquisition of Magnum Development and its majority stake in ACES Delta is part of the company’s efforts to pursue lower carbon energy solutions. The company aims to leverage the unique strengths of each partner and develop a large-scale hydrogen platform that provides affordable, reliable, and cleaner energy to help customers achieve their lower carbon goals.
The involvement of Mitsubishi Power and Chevron New Energies is expected to accelerate the expansion of hydrogen supply and contribute to the development of a viable and cost-competitive market for lower carbon solutions.
The announcement of Chevron’s acquisition has been welcomed by Utah Governor Spencer Cox, who sees it as a testament to the state’s commitment to clean energy innovation. Chevron’s partnership with ACES Delta is expected to drive the development of a hydrogen production and storage facility in Utah.
Financial advisory services for the transaction were provided by Citigroup Global Markets, Inc. for Chevron and Jefferies LLC for Haddington Ventures, the previous majority owner of ACES Delta. Haddington Ventures will continue to be involved in the project through its role in managing the investment vehicle that provides construction equity for the current project.
For more information visit www.chevron.com
14th September 2023