First Steps to Expanding Hydrogen Market: Chevron

Longview, NC –

Hydrogen is expected to play a key role in a lower carbon future. But like many developing energy sources, it comes with a chicken-or-the-egg conundrum. Which comes first—hydrogen fueling stations and infrastructure or the vehicles that rely on hydrogen power?

Chevron is one of the leading investors in a new round of funding for a hydrogen fuel and infrastructure supplier called OneH2 which hopes to answer that question. Together, they’re focusing on creating mobile fueling stations and distributed small-scale supply to meet growing demands for hydrogen. This meets customers where they need fuel and helps OneH2 and its investors scale up for what many hope to be a bright, hydrogen-focused future.

Global demand for hydrogen is expected to grow from 95 million tonnes in 2022 to 150 million tonnes in 2030, according to the International Energy Agency (IEA). Much of that growth is expected to play a key role in reducing greenhouse gases in sectors where emissions are hard to abate, including long-distance transport, heavy industry, aviation and shipping.

And yet, lackluster financial incentives and cost pressures could slow that growth. This recent round of funding could begin to plug those gaps and expand the adoption of hydrogen beyond its current uses.

“The OneH2 team deeply appreciates the steadfast support from our existing investors as we continue to invest in hydrogen infrastructure across the United States. Each of our investors will play a pivotal role in shaping the trajectory of OneH2 and contributing to the advancement of the broader hydrogen industry.”

– Paul Dawson, OneH2’s president and CEO

OneH2 has mobile fueling trailers that can go where the customer needs them, for instance, to fuel a fleet or satisfy onsite industrial processes. They can also provide contingency fueling when stations go down or run out of hydrogen.

Improving availability can encourage companies to switch to hydrogen fuels as infrastructure scales up to meet rising demand. That can decrease risks associated with building pipes and fueling stations when the demand is low. It can also lessen the gamble of building up demand first when sufficient infrastructure is not available.

“(OneH2 mobile hydrogen fueling stations) provide flexibility that can enable a broader, at-scale market. We are the customer-facing organization, and we want the customers to have confidence that Chevron will support this at scale when they are ready to expand.”

– Michael Ruddock, Chevron’s hydrogen business development manager

OneH2 has the benefit of being a lower-cost hydrogen solution based on proven technology. “Providing it at scale helps bring the cost down,” Ruddock said. “The investment in OneH2 is a lower-capital investment opportunity that provides proof of concept for larger-scale hydrogen investments.”