Chevron U.S.A., a subsidiary of Chevron, one of the world’s leading integrated energy companies, has signed an agreement with Iwatani Corporation of America to co-develop 30 hydrogen fueling sites in California by 2026.
The sites will be located at Chevron-branded retail locations across the state. Iwatani will operate and maintain the sites and supply hydrogen and transportation logistics services. Initially, these sites will fuel light-duty vehicles but ensure flexibility to service even heavy-duty vehicles in the long term. Chevron intends to supply part of these sites with excess hydrogen production capacity at its Richmond Refinery and future production from pilot projects situated in Northern California.
“This extensive collaboration between Iwatani and Chevron demonstrates our shared vision and commitment to support the decarbonization of transportation,” said Joseph S. Cappello, chairman and CEO of Iwatani Corporation of America. “Together, Chevron and Iwatani will establish one of the most robust, vertically integrated supply and infrastructure ecosystems in California and is a model that can be replicated to other markets.”
“Chevron believes that hydrogen has the potential to assist in lowering the carbon emissions of the transportation sector and other hard-to-decarbonize industries,” said Andy Walz, president of Americas Fuels & Lubricants for Chevron.
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Hydrogen does not emit carbon when burned. However, it is only created for commercial scale through steam refactoring of methane gas or by electroysis splitting the hydrogen from water.
Chevron is planning to ramp up hydrogen production intake to 150,000 metric tons per year for industrial, power and heavy duty transport by 2030. It previously has announced H2-focused deals with Toyota, Caterpillar and Cummins.
The market push for a utility-scale, baseload clean energy and vehicle power resource is driving momentum for hydrogen. Allied Market Research previously forecast that the hydrogen fuel cell vehicle market could grow 67 percent annually to $42 billion value in the U.S. by 2026.
