Oil giant Chevron took another step deeper into new energy technologies by agreeing to a framework to acquire an interest in an hydrogen storage project in Utah.
Chevron New Energies division would enter a joint venture already existing between Mitsubishi Power Americas and Magnum Development LCC. The joint venture, ACES Delta LLC, owns the Advanced Clean Energy Storage project to produce, store and transport green H2 at utility scale for power generation, transportation and industrial use in the western U.S.
The Advanced Clean Energy Storage site is located in Delta, Utah and adjacent to the Intermountain Power Plant. IPP will be the site of electrolysis powered by clean energy resources, plus underground salt cavern storage (illustration above) for the hydrogen produced by the electrolysis.
Chevron is working to build demand for hydrogen — and the technologies that support it — in heavy-duty transportation and industrial sectors
“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.”
The Intermountain Generating Station is transitioning from coal to natural gas, with plans to integrate 30% hydrogen fuel at start-up in 2025 and 100% hydrogen by 2045. The project is to provide 840 MW of electricity to customers in Utah and Southern California.
Mitsubishi Power was awarded the contract for two M501JAC gas turbines and power trains for the Intermountain station project. The company is also involved in the long-term, utility-scale hydrogen storage project.
“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,” Paul Browning, CEO of Mitsubishi Power Americas, said in a statement. “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.”
Chevron, Magnum and Mitsubishi Power are negotiating definitive documentation outlining Chevron’s participation in the joint venture.
Hydrogen can be produced through several means, including electrolysis separating the hydrogen and oxygen atoms from water, and steam reforming of methane. To be truly green or carbon-free hydrogen, the electrolysis would need to be powered by zero-carbon energy resources.