Chevron Acquires Majority Stake in JV Developing Advanced Clean Energy Storage Project

Sept. 14, 2023
The under-construction project will convert and store up to 100 metric tons of hydrogen per day and support the Intermountain Power Project’s IPP Renewed initiative

Chevron U.S.A., through its Chevron New Energies division, has closed a transaction with Haddington Ventures to acquire 100% of Magnum Development, thereby acquiring a majority stake in ACES Delta, a JV between Mitsubishi Power Americas and Magnum Development, The JV is currently developing an Advanced Clean Energy Storage project in Delta, Utah.

The under-construction project, which will convert and store up to 100 metric tons of hydrogen per day, plans to use electrolysis for the conversion process and solution-mined salt caverns for seasonal, dispatchable storage of the energy. The project is expected to be commercially operational in mid-2025 and will support the Intermountain Power Project’s IPP Renewed initiative.

The project will also receive opportunities to produce and supply hydrogen to customers in the utility, transportation, and industrial sectors in the western region of the U.S.

“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,” said Austin Knight, Vice President of Hydrogen at Chevron New Energies.

Chevron New Energies is developing ways to increase demand for lower carbon intensity hydrogen and technologies supporting cost-effective supply as a commercially possible alternative in the transportation, power, and industrial sectors, where GHG emissions are difficult to be reduced.

“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 and 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 as financial advisor to Chevron, while Jefferies served as financial advisor to Haddington.

“Having been the primary financial sponsor behind this key energy hub since 2008, we believe this transaction will accelerate lower carbon intensity solutions that reduce emissions in the western United States,” said John Strom, Managing Director at Haddington Ventures. “Haddington Ventures will remain committed to the success of ACES Delta through its role in the management of the investment vehicle that is providing construction equity to the current project.”