US oil giant Chevron has teamed up with automotive manufacturer Toyota to promote the development of commercially viable businesses in hydrogen, the companies announced Wednesday.

The two companies signed a memorandum of understanding to focus on hydrogen-related public policy measures, understanding market demand for fuel cell electric vehicles, and pursue research and development of hydrogen-powered transportation.

Bob Carter, executive president of Toyota Motor North America, said this partnership is an important step to build the hydrogen economy.

“Combining Toyota’s decades of experience in developing hydrogen powered fuel cell electric technology with Chevron’s deep resources in the energy sector has the potential to create new transportation choices for both consumers and businesses that move us toward our goal of carbon neutrality,” Carter said in the release.

The non-binding MOU plans for a formalised alliance by the early third quarter 2021, according to a Chevron spokesperson.

“The ultimate goal of a potential alliance is to advance opportunities to enable the commercial development at scale of hydrogen production, transportation, and delivery systems for wholesale and retail markets,” the spokesperson said.

Hydrogen-fuelled vehicles have gained attraction in public transportation systems, with Sunline Transit Agency in California working to make its entire fleet of buses hydrogen-powered, and the Champaign-Urbana Mass Transit District in Illinois recently purchasing an electrolyser to fuel its buses with hydrogen.

Data from the California Fuel Cell Partnership shows that as of 1 April 2021, nearly 10,000 fuel cell electric cars were sold in the US. While there are 135 hydrogen re-fuelling stations in development in California, there are only 45 currently available.

Toyota has also worked in developing hydrogen-fuelled vehicles, coming out with the 2021 Mirai that runs on hydrogen. Other automobile manufacturers have ventured into hydrogen-fuelled cars, including the Honda Clarity Fuel Cell and the Hyundai Nexo.

However, Chevron and Toyota's partnership will explore the infrastructural and policy changes that may need to occur before hydrogen-fuelled transportation becomes more mainstream.

Energy Transition

Chevron and Toyota team up for new hydrogen collaboration