Chevron, Toyota explore alliance to develop commercial US hydrogen businesses

Oil and gas company Chevron has signed a memorandum of understanding with carmaker Toyota to explore the development of "commercially viable, large-scale" hydrogen businesses in the US, the companies said April 21.

The two would investigate the market potential for light-duty and heavy-duty fuel cell electric vehicles, along with the supply options for such demand, they said in a statement.

They would also collaborate on public policy developments to support hydrogen infrastructure and explore research and development in hydrogen powered transportation and storage.

"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," Chevron's Americas Fuels & Lubricants president Andy Walz said.

"This opportunity leverages our market position, assets, technology, and organizational capability and supports our efforts to help advance a lower-carbon future," Walz said.

"Combining Toyota's decades of experience in developing hydrogen-powered fuel cell electric technology with Chevron's deep resources in the energy sector has the potential to create new transportation choices for both consumers and businesses that move us toward our goal of carbon neutrality," Toyota Motor North America executive vice president Bob Carter said.

S&P Global Platts last assessed the production cost of hydrogen (alkaline electrolysis, southern California including capex) at $2.47/kg April 20. Hydrogen produced via steam methane reforming (including capex, without carbon capture and storage) was assessed at $1.23/kg.