Chevron is embarking on a significant project to establish the $5 billion Project Labrador facility in Port Arthur, Texas, geared towards producing lower-carbon hydrogen and ammonia using steam-methane reforming coupled with carbon capture and storage. The initiative is part of the larger HyVelocity hydrogen hub, supported by federal funding and tax incentives for cleaner energy projects. The facility is scheduled to start operations by 2032 following the passage of federal legislation that amended clean-hydrogen production tax credits. Chevron's filing for a property-tax abatement in Jefferson County, Texas, underscores the significant investment in the region. The HyVelocity hub, involving key industry players, aims to catalyze production and distribution of lower-carbon hydrogen along the Gulf Coast, with Chevron as a founding member tapping into federal cooperative-agreement funding. Project Labrador is expected to create thousands of jobs and sequester millions of tons of carbon dioxide annually, shaping the clean hydrogen landscape in the region. The U.S. Gulf Coast's favorable conditions for hydrogen production have been highlighted, with Chevron's initiative leading the charge in large-scale blue hydrogen deployment. The project's focus on carbon capture and storage signifies a commitment to environmental sustainability in the hydrogen industry.