Oil and gas giant Chevron has pulled out of negotiations to acquire an equity rate of interest in Advanced Clean Energy Storage Delta (ACES Delta), the 300GWh green hydrogen project.
In September 2021 Chevron introduced plans to obtain a stake in ACES Delta, the joint venture between Mitsubishi Power Americas and Magnum Development who own the project which is set to launch online in 2025.
The project recently secured a $504 million loan from the Department of Energy (DOE), but will no longer receive investment from Chevron, a spokesperson said.
The company said: “Chevron is exploring numerous chances as we work to attain our lower carbon objectives and expand our lower carbon companies. For these opportunities to continue, industrial arrangements must fulfil certain limits. Sadly, the possibility to obtain an equity rate of interest in ACES Delta no longer meets our needs.”
ACES Delta will include 220MW of electrolysers that will convert renewable energy, mainly solar and wind, into up to 100 tonnes of green hydrogen a day. This will be stored in two significant salt caverns with a consolidated storage capacity of 300GWh.
The green hydrogen is being developed to help to power a new 840MW mixed cycle nuclear power plant from Intermountain Power Agency, which itself is converting a retiring coal plant. Aces Delta aims to acquire 30 percent of Intermountain’s plant when it comes online in 2025 with plans to acquire the plant completely by 2045. The acquisition could happen as early 2030 or 2035 according to Mitsubishi Power Americas’ Thomas Cornell.
Chevron stated that: “We continue to check out hydrogen possibilities– including in the western United States where we have actually developed a very early and also expanding business– and also remain committed to recognising as well as going after reduced carbon services and offering cost effective, trustworthy, ever-cleaner energy.”
Chevron has partnered with biodiesel producer Renewable Energy Group, to develop the Chevron Renewable Energy Group. Chevron has said that the partnership will help to expand the company’s renewable fuels manufacturing capacity to 100,000 barrels per day by 2030.
Chevron’s decision not to invest in the green hydrogen project comes as BP chooses to invest. BP will obtain a 40.5 percent stake and become the primary operator of the Asian Renewable Energy Hub (AREH).
AREH is a project in Western Australia that is expected to produce around 1.6 million tonnes of green hydrogen a year (or nine million tonnes of green ammonia), and as much as 26GW of solar and wind power. What percentage of the hydrogen will be kept for later conversion into electrical energy, versus the percentage to be converted immediately for industrial use, is not yet clear.
Other partner investors in AREH are InterContinental Energy (26.4 percent), CWP Global (17.8 percent) and Macquarie Capital and Macquarie’s Green Investment Group (15.3 percent).
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