US supermajor Chevron has teamed up with US heavy equipment manufacturer Caterpillar to collaborate on potential hydrogen projects.

The pair have signed a collaboration agreement to develop hydrogen demonstration projects in transportation and stationary power applications, including prime power.

Introducing Accelerate Hydrogen
We're pleased to announce the launch of Accelerate Hydrogen - the latest newsletter from Recharge and Upstream. Sign up now for an unbiased, clear-sighted view of the latest developments in the fast-growing hydrogen sector every week.

The two companies will study the feasibility and performance of hydrogen as a viable alternative to traditional fuels for line-haul rail and marine vessels, as well as prime power.

Chevron and Caterpillar will also immediately start work on demonstrating a hydrogen-fuelled locomotive and associated hydrogen-fuelling infrastructure at locations across the US, which will be facilitated by Caterpillar subsidiary Progress Rail.

“Through Chevron New Energies, Chevron is pursuing opportunities to create demand for hydrogen – and the technologies needed for its use — for the heavy-duty transportation and industrial sectors, in which carbon emissions are harder to abate,” said Chevron New Energies president Jeff Gustavson.

“Our collaboration with Caterpillar is another important step toward advancing a commercially viable hydrogen economy.”

Chevron only recently launched its Chevron New Energies business, which is focused on commercialising hydrogen, carbon capture and storage, and offsets, as well as supporting growth in biofuels.

The US giant has ruled out large-sscale solar and wind projects forming part of its low-carbon business as it does not believe it has a competitive advantage in that space.

Chevron is set to provide further details on its Chevron New Energies business in an investor presentation on 14 September.