The Hydrogen Hub Betting on Reliable Clean Power

Advanced Clean Energy Storage project links renewables and underground storage to provide dispatchable power as US hydrogen moves beyond pilots

30 Dec 2025

A large hydrogen hub in the western US is approaching commercial operation, marking a shift in how hydrogen is used in the power system, from experimental projects to infrastructure designed to support day-to-day electricity supply.

The Advanced Clean Energy Storage (ACES Delta) hub in Delta, Utah, developed by Chevron New Energies and Mitsubishi Power Americas, is largely built and has entered commissioning, with operations expected to scale up during 2026. The project is among the most advanced attempts in the US to integrate hydrogen production, storage and use at scale.

The hub produces hydrogen using electricity from wind and solar generation and stores it in underground salt caverns. The stored hydrogen can then be used to generate power when electricity demand is high, addressing a central challenge for grids with rising shares of renewable energy: supply often peaks when demand is low, while systems still require power that can be dispatched on request.

By converting excess renewable electricity into hydrogen and storing it for weeks or months, the facility is designed to provide long-duration energy storage. Utilities see this as increasingly important as coal plants are retired and gas generation faces tighter emissions constraints.

Chevron has positioned the project as a way to convert intermittent renewable output into low-carbon energy that can be delivered reliably. Mitsubishi Power has emphasised its role in grid stability. The Intermountain Power Agency plans to use hydrogen from the hub at its IPP Renewed power plant as part of its transition to cleaner electricity while maintaining reliability.

Project developers argue that hydrogen offers advantages over batteries for long-term storage. Batteries are typically used for short-term balancing, while hydrogen can be stored at scale for much longer periods, potentially supporting power systems as electricity demand grows and climate targets tighten.

The hub also has implications beyond electricity generation. A large and predictable supply of hydrogen could reduce reliance on frequent fuel deliveries, limit price swings and support planning for hydrogen use in industry and, over time, transport.

More broadly, ACES Delta reflects a shift in US energy strategy towards integrated hydrogen systems that combine production, storage and end use. Costs, policy support and long-term demand remain uncertain, but developers and utilities are increasingly moving from demonstration projects towards commercial deployment.