Chevron is one of the world’s largest oil and gas companies. But now they have a new ambition: hydrogen.
What’s happening:
- Chevron (NYSE: CVX) has announced they are developing a new hydrogen production project located in California
- The new project is being done through their Chevron New Energies division and will leverage solar energy as a primary power source
Why it matters:
- Hydrogen has enormous potential as a low carbon source of energy for everything from powering vehicles to generating electricity
- Chevron has publicly stated that they are embarking on building hydrogen production to be able to better support building out a vast network of hydrogen refuelling stations
By the numbers:
- The new hydrogen production project from Chevron is anticipated to be 5 megawatts
- It is expected that the new facility will be able to produce 2 tons of hydrogen per day once fully constructed
Going deeper:
- Chevron has been an early mover on finding ways to embrace the energy transition and already produces sustainable aviation fuel as well as renewable diesel
- There has been a recent flurry of new venture capital funding for both green hydrogen and white hydrogen projects, including the notable capital raise for Breakthrough Energy Ventures-backed Koloma
- Hydrogen powered vehicles have also been on the rise, especially for the purpose of commercial transportation and longer distance deliveries that are challenging for electric vehicles in areas without significant charging infrastructure
