our hydrogen fuel value chain: the making of a viable alternative

Chevron believes that the future of energy is lower carbon and that hydrogen will play a part in that future. In this article, we’ll explore what it will take to make hydrogen a feasible alternative to traditional fuels in the transportation sector.

Getting hydrogen to the market requires a value chain. A value chain includes the steps that are taken to create a product from beginning to end. For hydrogen to be a viable alternative to traditional fuels, a hydrogen value chain is needed.

Learning from the rollout of battery electric vehicles (BEVs), which was stunted in its early stages by a lack of infrastructure, we are working to help bring hydrogen-powered vehicles and infrastructure to customers simultaneously.

In the case of hydrogen vehicles, customers will need fuel. To get that fuel, they will need fueling stations. And those fueling stations will need hydrogen supplied to them by a company like Chevron.

The availability of cars, trucks and ships that run on hydrogen will assist in driving hydrogen adoption.

Hydrogen, as the most abundant element in the universe, presents many opportunities for a lower carbon future. Hydrogen fuel cells can be used to generate electricity for powering vehicles, facilities and other equipment.

Hydrogen can be produced from a variety of resources, including natural gas, renewable natural gas (RNG) and water.

As a fuel, hydrogen does not emit carbon dioxide (CO₂). Instead, it emits water (H₂O).

To spur adoption and bolster the value chain, Chevron is:

• Codeveloping and constructing hydrogen fueling sites with Iwatani.
• Investing in Raven SR’s waste-to-hydrogen production facility in Northern California.
• Planning development of a scalable hydrogen hub in California by leveraging our Richmond refinery.
• Pursuing opportunities to profitably produce lower carbon hydrogen at scale.
• Investing in Hydrogenious to assist in affordable, efficient storage and transportation of hydrogen.
• Advancing policies to help hydrogen become a scalable substitute for traditional fuels.

“Chevron is focused on building a profitable, large-scale hydrogen business that leverages our assets, capabilities, and customer relationships,” said Austin Knight, vice president of Chevron New Energies, “We are well positioned to participate across the value chain and are identifying ways the transportation, power and hard to abate industrial sectors can achieve their lower carbon goals.”

Chevron is also pursuing commercial opportunities for power generation and the industrial sector. We are developing a scalable hydrogen hub in California and investing in companies that are creating hydrogen production units and bulk hydrogen storage and transportation. We are also looking at other potential hubs across the U.S.

We are looking at multiple use cases in heavy-duty transport, including commercial vehicles, rail and marine vessels. We believe the future is lower carbon and that hydrogen is part of a broad cross section of transportation energy solutions necessary to achieve it.