The corporate venture capital arms for Shell PLC (NYSE: SHEL) and Chevron Corp. (NYSE: CVX), which both have large presences in Houston, are investing in hydrogen.
Chevron Technology Ventures and Shell Ventures both participated in Edmonton, Canada-based Aurora Hydrogen's $10 million Series A funding round, the hydrogen company announced Aug. 1. The round was led by San Francisco-based Energy Innovation Capital and included participation from Oklahoma-based gas pipeline firm Williams Companies Inc. (NYSE: WMB) and the George Kaiser Family Foundation.
Aurora Hydrogen aims to provide low-cost hydrogen to customers using scalable technology that can be deployed at the point of use. Aurora is developing proprietary microwave pyrolysis technology to produce hydrogen and solid carbon without consuming water or generating carbon dioxide emissions. The firm's technology also consumes 80% less electricity than conventional methods of producing hydrogen through electrolysis, Aurora said.
"We use existing energy pipelines and distribution systems to move the energy, then produce hydrogen where it's needed, eliminating the need for any new costly hydrogen transportation infrastructure," said Aurora Hydrogen CEO Andrew Gillis.
The $10 million in Series A capital will go toward building a demonstration plant in Edmonton capable of producing 200 kilograms of hydrogen per day, Aurora said.
"Aurora can be a significant contributor to achieving global net-zero targets and is very well aligned with EIC's focus on the future of energy, Chevron's commitment to industrial decarbonization and energy decentralization, Shell's strategy to invest in low carbon energy and Williams' hydrogen development program," said EIC Managing Director Christopher Smith.
Shell and Chevron are two of the largest energy employers in the Houston metro region, according to Houston Business Journal research. In late June, the Wall Street Journal reported that Chevron Corp. (NYSE: CVX) plans to sell its current headquarters in California and move some employees to Houston, though the energy supermajor will remain headquartered in California.
Developing low-carbon hydrogen and other renewable fuels has been a major focus for energy companies in Houston. In July, Houston-based Buckeye Partners LP announced plans to develop a green hydrogen production and export facility in Nova Scotia after acquiring Bear Head Energy Inc., which was previously developing a liquefied natural gas facility at the site.
Other companies, including New York-based BNB Renewables and Chilean firm HIF Global LLC, have recently considered developing new hydrogen production capabilities inside of Texas.
