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Chevron details plans to integrate Bayou Bend CCS with HyVelocity hydrogen hub

By Naomi Klinge – Reporter, Houston Business Journal
May 1, 2024

Chevron Corp. (NYSE: CVX) is preparing to integrate its Bayou Bend carbon capture and storage project near Beaumont and Port Arthur with the massive HyVelocity hydrogen hub across the Texas Gulf Coast.

At an event detailing a new report from the National Petroleum Council on scaling up hydrogen, Austin Knight, Chevron’s vice president of hydrogen, told media that integrating carbon capture and hydrogen on the Texas Gulf Coast would make sense for both sectors.

“We're a partner in the Bayou Bend carbon storage project, and this is basically between Houston and Port Arthur, both onshore and offshore. So for us, it makes a lot of sense then to integrate the development of hydrogen into that carbon storage solution in Bayou Bend,” Knight said.

The Bayou Bend CCS project is a joint venture between Chevron, TotalEnergies SE (NYSE: TTE) and Equinor ASA (NYSE: EQNR), with capacity to store 1 billion tonnes of carbon dioxide underground.

Meanwhile, the HyVelocity Hub brought seven industry partners with Houston presences — AES Corp. (NYSE: AES), Air Liquide, Chevron, Exxon Mobil Corp. (NYSE: XOM), Mitsubishi Power Americas, Ørsted and Sempra Infrastructure — and other academic, nonprofit and industry partners together to present the Texas Gulf Coast as a candidate for a piece of the up to $8 billion in hydrogen hub funding the Department of Energy offered. HyVelocity was one of seven projects selected by the DOE, and the team will negotiate with the federal government for up to $1.2 billion in funding.

Knight said he and the National Petroleum Council do not anticipate repurposing much existing natural gas infrastructure for use in the hydrogen ecosystem — though he said the existing infrastructure in Houston makes it an ideal location for the projects — so new hydrogen and carbon dioxide pipelines will be vital to building out low-carbon-intensity hydrogen.