Oil giant Chevron said it expects its new solar-to-hydrogen project in California to produce about 2.2 tons of hydrogen per day by 2025.
The large oil company Chevron has disclosed intentions to construct and run a solar-to-hydrogen production plant in California. The 5 MW project will divide non-potable water into hydrogen fuel using power produced by the sun.
This project is Chevron’s initial direct investment in an in-house hydrogen initiative. By 2050, the worldwide hydrogen market might grow to be worth $1.4 trillion, according to Deloitte.
Electrolysis is the process of splitting a water molecule with electricity to produce hydrogen fuel. Rather than carbon dioxide, it releases warm air and water vapor when burned as fuel.
Nonetheless, the US Department of Energy estimates that nowadays, natural gas steam reforming produces nearly 95% of all hydrogen.
According to Chevron, the facility should start producing 2.2 tons of hydrogen per day in 2025. This can power 54,000 houses, according to a news statement from the company.
For renewable energy sources like solar and wind, hydrogen serves as a medium for storing energy. In contrast to lithium-ion battery storage, which is currently the most advanced type of new-build storage being developed for renewable energy, this fuel is highly dispatchable and long-duration, making it ready to fulfill a diverse set of use cases.
The project is a component of Chevron’s goal to produce 150,000 tons of hydrogen fuel annually for use by heavy-duty, power, and industrial clients.
In 2024, the firm plans to spend $2 billion on “lower carbon” projects; however, rather than investing in renewable energy, a large portion of these expenditures will go into expanding renewable diesel and carbon sequestration.
Chevron revealed its $16 billion company-wide capital spending plan for 2024.
According to a recent Stanford University study, many countries may cut their yearly energy expenses by as much as 61% by utilizing hydrogen in conjunction with renewable energy-charged battery storage.
A first-of-its-kind 293 MWh energy storage and hydrogen project in California was unveiled in February by utility-scale energy storage startup Energy Vault.
When it’s finished, it will be the biggest green hydrogen hybrid and long-term energy storage project in the US.
Source Chevron
