Chevron has confirmed plans for a major hydrogen and ammonia facility in Port Arthur, Texas, as part of its low-carbon strategy, but has not yet confirmed the reported $5 billion investment estimate. While filings with local authorities suggest the development, known as Project Labrador, could begin construction in 2027, a company spokesperson stated that the project is moving forward but does not yet have a fixed start date.

Project Labrador is part of Chevron’s broader effort to establish a Gulf Coast hydrogen hub, and it is being considered for funding through the federally supported HyVelocity Hub initiative. The company is also pursuing eligibility for the 45V hydrogen production tax credit, which provides up to $3 per kilogram of clean hydrogen produced over 10 years, a key incentive that requires construction to begin before January 1, 2028. Chevron’s strategy relies on a combination of federal funding and local tax abatements to improve the project’s financial viability.

As part of a new tax agreement with Jefferson County, the Port Arthur facility is expected to create 100 full-time jobs and benefit from a 10-year property tax exemption. The site could also be expanded in two future phases. Cynthia Conner, director of carbon offsets policy for Chevron New Energies, said to Beaumont Enterprise, in May, that this agreement represents a significant step that allows the company to begin laying the groundwork for long-term economic development in the region.

In addition to hydrogen and ammonia production, the facility is expected to link with the Bayou Bend carbon capture and storage project, announced by Chevron in 2023, which will help sequester CO₂ emissions from hydrogen production. While the company has not disclosed a final investment figure or timeline, the Port Arthur development positions Chevron to play a central role in the U.S. hydrogen economy.