Chevron and Caterpillar in Hydrogen Pact

Chevron and Caterpillar in Hydrogen Pact
Chevron U.S.A. Inc and Caterpillar Inc have announced a collaboration agreement to develop hydrogen demonstration projects in transportation and stationary power applications.

Chevron U.S.A. Inc., a subsidiary of Chevron Corporation (NYSE: CVX), and Caterpillar Inc. (NYSE: CAT) have announced a collaboration agreement to develop hydrogen demonstration projects in transportation and stationary power applications.

The goal of the collaboration is to confirm the feasibility and performance of hydrogen for use as a commercially viable alternative to traditional fuels for line-haul rail and marine vessels, Chevron noted, adding that the collaboration also seeks to demonstrate hydrogen’s use in prime power. The parties are said to have agreed to demonstrate a hydrogen-fueled locomotive and associated hydrogen-fueling infrastructure. Work on the rail demonstration will begin immediately at various locations across the United States, according to Chevron.

“Through Chevron New Energies, Chevron is pursuing opportunities to create demand for hydrogen - and the technologies needed for its use - for the heavy-duty transportation and industrial sectors, in which carbon emissions are harder to abate,” Jeff Gustavson, the president of Chevron New Energies, said in a company statement.

“Our collaboration with Caterpillar is another important step toward advancing a commercially viable hydrogen economy,” he added in the statement.

Joe Creed, Caterpillar’s group president of energy and transportation, said, “as we work to provide customers with the capability to use their desired fuel type in their operations, collaborating with Chevron is a great opportunity to demonstrate the viability of hydrogen as a fuel source”.

“This agreement supports our commitment to investing in new products, technologies and services to help our customers achieve their climate-related objectives as they build a better, more sustainable world,” he added in the statement.

Earlier this week, Chevron U.S.A. Inc., through its Chevron Products Company division, Delta Air Lines, and Google announced a memorandum of understanding (MOU) to track sustainable aviation fuel (SAF) test batch emissions data using cloud-based technology.

As part of the project, Chevron plans to produce a test batch of SAF at its El Segundo Refinery and to sell SAF to Delta at Los Angeles International Airport. Google Cloud plans to build a data and analytics framework to securely ingest and analyze emissions data from Delta and Chevron related to the SAF test batch. Chevron highlighted that the companies hope to create a common, more transparent model for analyzing potential greenhouse gas emissions reductions that could then be adopted by organizations considering SAF programs.

“This MOU builds on our previously announced effort to be the first refiner in the U.S. to ratably co-process biofeedstocks in an FCC through a capital-efficient investment program,” Andy Walz, the president of Americas Fuels and Lubricants for Chevron, said in a company statement published by the company on September 7.

“The data sharing and transparency component of this partnership will help us better understand the emissions from sustainable aviation fuel production and delivery, supporting our goal to advance lower carbon fuels,” he added.

Also this month, Chevron U.S.A. Inc and Bunge North America Inc., a subsidiary of Bunge Limited (NYSE: BG), announced an MOU of a proposed 50/50 joint venture to help meet the demand for renewable fuels and to develop lower carbon intensity feedstocks. Upon finalization of the joint venture, Chevron and Bunge’s partnership would establish a supply chain from farmer to fueling station for both companies. Bunge is expected to contribute its soybean processing facilities in Destrehan, Louisiana, and Cairo, Illinois, and Chevron is expected to contribute approximately $600 million in cash to the joint venture.

Chevron notes on its website that it believes affordable, reliable and ever-cleaner energy is essential to achieving a more prosperous and sustainable world. Back in March, the company revealed that it had exceeded its 2023 upstream carbon intensity reduction targets three years ahead of schedule and announced lower 2028 targets and zero routine flaring by 2030.

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