Chevron Corp. and Cummins Inc. are exploring a strategic alliance to build market demand for hydrogen and alternative energy resources.

A memorandum of understanding provides the framework for Chevron U.S.A. Inc. and Cummins to initially collaborate on four main objectives. First up is advancing public policy to promote hydrogen as a decarbonizing solution for transportation and industry.

Collaborating with Cummins “is a positive step toward our goal of building a large-scale business in a lower-carbon area that is complementary to our current offerings,” said Chevron’s Andy Walz, president of the Americas Fuels & Lubricants business. 

“Hydrogen is just one lower-carbon solution we are investing in that will position our customers to reduce the carbon intensity of...