Chevron Acquires Majority Interest in ACES Hydrogen Project

Chevron's New Energies division closed a transaction with Haddington Ventures to completely acquire Magnum Development, absorbing the company’s majority interest in ACES Delta, LLC. The ACES Delta is a joint venture between Mitsubishi Power Americas and Magnum Development to build and operate the Advanced Clean Energy Storage (ACES) project in Delta, UT—a plan to use electrolysis to convert renewable energy into hydrogen and use solution-mined salt caverns to store the energy.

“As we continue to pursue lower carbon energy solutions, we are excited to move forward with the Advanced Clean Energy Storage hydrogen project, through our acquisition of Magnum Development and partnership with Mitsubishi Power, to build on Chevron’s 75-year history in Utah,” said Austin Knight, vice president, Hydrogen, Chevron New Energies. “We seek to leverage the unique strengths of each partner to develop a large-scale hydrogen platform that provides energy and helps our customers achieve their lower carbon goals.”

The first project is currently under construction and is expected to commence operation in mid-2025, converting and storing up to 100 metric tons of hydrogen per day to support the Intermountain Power Project’s “IPP Renewed” initiative. Opportunities for the production and supply of hydrogen to industrial customers in the western region of the United States are in development.

“Reaching this milestone in the development of our hydrogen project will not only have significant benefits to the western U.S. population, but it will also serve as a blueprint for future hydrogen opportunities,” said Michael Ducker, senior vice president of Hydrogen Infrastructure for Mitsubishi Power. “With Chevron New Energies’ involvement, we expect to expand hydrogen supply more quickly. Together, we are investing in the future of hydrogen, helping to create a viable, cost-competitive market for emerging lower carbon solutions.”

Chevron New Energies is working to make lower carbon intensity hydrogen an option in the transportation, power, and industrial sectors. Low-carbon hydrogen can be integrated with technologies, providing a commercially viable alternative to traditional fuels in the target sectors.