Chevron USA Inc., through its Chevron New Energies division, has completed the acquisition of a 100% stake in Magnum Development LLC from Haddington Ventures, resulting in a majority stake in ACES Delta LLC, which is developing the Advanced Clean Energy Storage project in Delta. , Utah.
The Advanced Clean Energy Storage project plans to use electrolysis to convert renewable energy into hydrogen and will use salt caverns mined with solutions for seasonal and dispatchable energy storage, according to a Chevron news release Tuesday. ACES Delta is a joint venture between Mitsubishi Power Americas Inc. and Magnum Development.
The project is designed to convert and store up to 100 metric tons per day of hydrogen. It is expected to enter commercial-scale operations in mid-2025 to support the renewed Intermountain Power Project (IPP) initiative, the statement said.
According to the IPP website, the project has an IPP Renewed initiative that includes the retirement of existing coal-fired units at the IPP site in Utah, the installation of new gas-fired power generation units natural able to use hydrogen for 840 megawatts. of clean generation, the modernization of IPP’s southern transmission system connecting IPP to Southern California, and the development of hydrogen production and long-term storage capabilities. “IPP will use renewable energy electrolysis to split water into oxygen and hydrogen, storing the latter in underground salt caverns for use as fuel to drive electricity-generating turbines. The new natural gas generating units will they will design to use 30 percent hydrogen fuel at start-up, moving to 100 percent hydrogen fuel by 2045 as technology improves,” the website states.
Chevron said there are several opportunities under development for the Advanced Clean Energy Storage project to produce and supply hydrogen to customers in the utility, transportation and industrial sectors in the western US.
“As we continue to seek lower carbon energy solutions, we are delighted to move forward with the Advanced Clean Energy Hydrogen Storage Project, through the acquisition of Magnum Development and partnership with Mitsubishi Power, to base -us in Chevron’s 75-year history in Utah.” Austin Knight, Vice President of Hydrogen at Chevron New Energies said. “We seek to leverage the unique strengths of each partner to develop a large-scale hydrogen platform that provides affordable, reliable and increasingly cleaner energy and helps our customers achieve their low-carbon goals.”
“Achieving this milestone in the development of our hydrogen project will not only have significant benefits for the people of the western US, but will also serve as a model for future hydrogen opportunities,” said Michael Ducker, senior vice president of hydrogen infrastructure at Mitsubishi Power. “With the participation of Chevron New Energies, we look forward to expanding the supply of hydrogen more rapidly. Together, we are investing in the future of hydrogen, helping to create a viable and cost-competitive market for emerging low-carbon solutions “.
Haddington Ventures managing director John Strom said: “Having been the lead financial backer of this key energy hub since 2008, we believe this transaction will accelerate lower-carbon solutions that reduce emissions to the western U.S. Haddington Ventures will remain committed to the success of ACES Delta through its role in managing the investment vehicle that provides construction capital to the current project.”
As part of broader efforts to seek lower-carbon energy solutions, Chevron New Energies is working to improve demand for low-carbon hydrogen as a commercially viable alternative in the transportation, energy and industrial sectors , where greenhouse gas emissions are difficult to reduce. , the statement said.
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