Chevron Corp. is advancing its low-carbon energy strategy with plans to build a $5 billion blue H₂ and ammonia plant in Port Arthur, Texas. Dubbed Project Labrador, the initiative is scheduled to begin construction in 2027 and commence operations by 2032. Chevron has filed for tax abatements and is pursuing federal funding through the HyVelocity Hub, a clean H₂ initiative, to offset costs.

The company is aiming to qualify for the 10-year 45V clean H₂ production tax credit, worth up to $3 per kilogram of clean H₂, which requires construction to start before January 1, 2028. Project Labrador illustrates Chevron’s long-term investment in U.S. clean energy infrastructure and its efforts to capitalize on federal incentives to reduce emissions and enhance financial viability.

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