Chevron New Energies, a division of Chevron U.S.A. Inc., announced it is developing a 5 MW hydrogen production project in California’s Central Valley. The project aims to create lower carbon energy by utilising solar power, land, and non-potable produced water from Chevron’s existing assets at the Lost Hills Oil Field in Kern County. Reportedly, this low carbon intensity (LCI) electrolytic hydrogen will be produced through electrolysis, which is the process of using electricity to split water into hydrogen and oxygen.
The facility is designed to produce two tonnes of LCI hydrogen per day, with the goal of supporting an expanding hydrogen refuelling network. The development of the project is expected to span multiple years, and the start of commercial operations will depend on several factors, including flexible and supportive legislative and regulatory energy policies, final engineering design, timely permitting, and obtaining the necessary materials.
In September 2023, Chevron bought a majority stake in the Advanced Clean Energy Storage project. The oil giant declared that it had reached an agreement with private equity firm Haddington Ventures to buy 100 per cent of Magnum Development LLC, giving it majority control over the latter’s joint venture with Mitsubishi Power Americas LLC.
REGlobal’s Views: Chevron has already been present in the low-carbon fuel market since a few years and offers various alternatives like sustainable aviation fuel, renewable diesel and others. Thus, this green hydrogen project will help the company to further diversify its product portfolio. Meanwhile, the project is coming in California, which will place it in proximity to important transport corridors.
