Chevron has acquired Magnum Development, LLC, thereby securing a pivotal stake in the Advanced Clean Energy Storage endeavor based in Utah. This acquisition positions Chevron at the forefront of ACES Delta, LLC, an initiative concentrated on hydrogen energy storage, with a projection to commence operations by mid-2025.
Tracing back to September 2021, Chevron inked a framework agreement, signaling its interest in ACES Delta. Fast forward to April 2022, the venture was bolstered by a $504.4 million loan guarantee from the U.S. Department of Energy. Further amplifying its financial robustness, Haddington Ventures pledged an equity financing of $650 million in June 2022. However, in a strategic pivot on June 22, 2022, Chevron opted to recede from ACES Delta. The culmination of the acquisition now, given this backdrop, offers an intriguing narrative on strategic deal closures.
Chevron is no stranger to the hydrogen industry, being a core member of the HyVelocity green hydrogen hub. Demonstrating its dedication, Chevron has applied for funds from the DOE’s $8 billion regional clean hydrogen hubs initiative, alongside other contenders such as the INEOS-driven LIGH2T hub and Dominion Energy’s Southeast Hydrogen hub.
