Chevron acquires Utah energy storage developer from Haddington Ventures

Chevron USA. Inc., through its Chevron New Energies division, has closed a transaction with Haddington Ventures to acquire 100 per cent of Magnum Development and thus a majority interest in ACES Delta, LLC - a joint venture between Mitsubishi Power Americas and Magnum Development - 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 solution-mined salt caverns for seasonal, dispatchable storage of the energy. The first project, designed to convert and store up to 100 metric tonnes per day of hydrogen, is under construction and is expected to enter commercial-scale operations in mid-2025.

Austin Knight, vice president, hydrogen at Chevron New Energies, said: “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. We seek to leverage the unique strengths of each partner to develop a large-scale, hydrogen platform that provides affordable, reliable, ever-cleaner energy and helps our customers achieve their lower carbon goals.”

Michael Ducker, senior vice president of hydrogen infrastructure at Mitsubishi Power, said: “Reaching this milestone in the development of our hydrogen project will not only have significant benefits to the western US population, but it will also serve as a blueprint for future hydrogen opportunities. 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.”

Citigroup Global Markets, Inc. served as financial advisor to Chevron. Jefferies LLC served as financial advisor to Haddington.

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