Chevron to join hydrogen joint venture with Magnum Development and Mitsubishi Power

Chevron U.S.A. Inc announced it has agreed on a framework to acquire an equity interest in ACES Delta, LLC, which is a joint venture between Mitsubishi Power Americas Inc. and Magnum Development, LLC. 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.

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.”

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. Closing of the transaction will be subject to customary closing conditions.