Chevron, Toyota team up to examine hydrogen
US major Chevron said April 21 it was teaming up with the North American division of Toyota to explore the use of hydrogen in the transportation sector.
“We are excited to collaborate with Toyota,” Andy Walz, the president of Chevron’s North American fuel and lubricants division, said. “Working towards a strategic alliance on hydrogen presents an opportunity to build a large-scale business in a low-carbon area that is complementary to our current offerings.”
Through a memorandum of understanding (MoU), the companies said they would push for policies that support hydrogen infrastructure, explore market opportunities in the light- and heavy-duty fuel cell vehicle sector and jointly pursue research and development in hydrogen-powered transportation and storage.
Apart from its role as a near-zero carbon energy solution, the US Energy Department has estimated that new uses for hydrogen in the energy sector could generate as much as $140bn in revenue and create some 700,000 jobs by 2030
The deal between Chevron and Toyota follows a promise to investors from the California-based energy company last month that it would double the return on capital by 2025 while reducing its carbon intensity.
Chevron's message to investors is "higher returns, lower carbon," CEO Michael Wirth said in a March statement.
Chevron exceeded its 2023 upstream carbon intensity reduction target three years early and has announced tougher targets for 2028. The company aims to lower its greenhouse gas intensity for oil and gas by 35% versus 2016 to 24 kg CO2 equivalent/barrel of oil equivalent (boe), cut overall flaring intensity by 65% to 3 kg CO2e/boe and methane intensity by 50% to 2 kg CO2e/boe.