Chevron Reveals Plans to Build $5B Blue Hydrogen Plant in Port Arthur

Chevron Corporation CVX, a U.S.-based oil and gas giant, is reportedly planning to construct a huge blue hydrogen and ammonia plant in Port Arthur, TX. The company has made the necessary filings for tax abatements to support the construction of this plant. The investment associated with this large-scale blue hydrogen and ammonia plant is nearly $5 billion.Apart from tax benefits, Chevron is also seeking funding for the project through the HyVelocity Hub initiative. This initiative, which is federally funded, is expected to reduce the total CVX investment in this low-carbon energy project. Chevron's development, named Project Labrador, is expected to start construction in 2027. The plant is slated to begin commercial operations in 2032.The project could qualify for tax exemptions, provided the construction begins as per schedule. Chevron is targeting the 10-year 45V clean hydrogen production tax credit, which has an expiration date of Jan. 1, 2028. If the development of Project Labrador proceeds on time, it could meet the deadline to access this valuable incentive. The 45V clean hydrogen production tax credit should provide up to $3 per kilogram of clean hydrogen produced for 10 years.The construction of this blue hydrogen and ammonia plant in Port Arthur underscores Chevron's commitment to low-carbon energy projects in the United States. CVX has made the required filings that enable it to utilize the tax incentives to reduce the costs associated with the construction of this low-carbon hydrogen facility. By leveraging federal funding through the HyVelocity Hub and available tax policy benefits, Chevron aims to improve the financial feasibility of Project Labrador.CVX’s Zacks Rank & Key PicksCVX currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks from the energy sector are Flotek Industries Inc. FTK, The Williams Companies, Inc. WMB and Oceaneering International OII. While Flotek Industries sports a Zacks Rank #1 (Strong Buy) at present, The Williams Companies and Oceaneering International carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.Flotek Industries specializes in green chemistry, which provides innovative solutions aimed at reducing the environmental impact of the energy industry. The company develops specialty chemicals tailored for both domestic and international energy producers, as well as oilfield service companies. These chemicals not only help reduce the environmental impact of hydrocarbon production but also lower operational costs.The Williams Companies, Inc. is a premier energy infrastructure provider in North America. The company’s core operations include finding, producing, gathering, processing and transporting natural gas and natural gas liquids. Williams boasts a pipeline system of more than 33,000 miles and is one of the largest domestic transporters of natural gas.Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Williams Companies, Inc. (The) (WMB): Free Stock Analysis Report Chevron Corporation (CVX): Free Stock Analysis Report Oceaneering International, Inc. (OII): Free Stock Analysis Report Flotek Industries, Inc. (FTK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks