Chevron buys majority stake in Advanced Clean Energy Storage project in Delta

Chevron U.S.A. Inc., through its Chevron New Energies division, has closed a deal to acquire 100% of Magnum Development, LLC, and thereby secure a majority interest in ACES Delta, LLC. The joint venture between Mitsubishi Power Americas, Inc., and Magnum Development is developing the Advanced Clean Energy Storage project in Delta, Utah.

The ACES Delta Project’s Technical Specifications

The Advanced Clean Energy Storage project in Utah plans to use electrolysis to convert renewable energy into hydrogen. The project will employ solution-mined salt caverns for seasonal, dispatchable energy storage. The initial venture aims to convert and store up to 100 metric tons per day of hydrogen. Commercial-scale operations are projected to commence in mid-2025 to support the Intermountain Power Project’s “IPP Renewed” initiative.

Broader Energy Impact and Opportunities

The Advanced Clean Energy Storage project provides several opportunities to produce and supply hydrogen in the utility, transportation, and industrial sectors in the western U.S. Chevron New Energies is keen on fostering lower carbon intensity hydrogen as a commercially viable alternative in sectors where reducing greenhouse gas emissions poses challenges.

Austin Knight, vice president, Hydrogen, 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.”

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

State and Business Reactions to the Acquisition

The deal has garnered support from state officials and business leaders. Utah Governor Spencer Cox hailed the move as an example of Utah’s conducive environment for clean energy innovation. Meanwhile, Craig Broussard, president, CEO, and board chairman of Magnum Development, and John Strom, managing director of Haddington Ventures, also expressed their enthusiasm and commitments.

Craig Broussard said: “I look forward to this partnership with Chevron in the ACES Delta mission. Chevron will add tremendous strategic value as we develop a hydrogen production and storage facility.”

John Strom stated: “Haddington Ventures is very excited to see Chevron coming on board as the new majority owner at ACES Delta. We believe this transaction will accelerate lower carbon intensity solutions that reduce emissions in the western United States.”

Transaction Details and Financial Advisors

Citigroup Global Markets, Inc. served as the financial advisor for Chevron in the deal. On the other side, Jefferies LLC provided financial advisory services to Haddington Ventures for the transaction.