Chevron Corp., the U.S.-based oil and gas giant, plans to build a huge blue hydrogen and ammonia plant in Port Arthur, Texas, according to Yahoo! Finance.

The company has completed the needed filings for tax abatements to support the plant's construction. There is an investment of nearly $5 billion associated with the large-scale blue hydrogen and ammonia plant.

Aside from tax benefits, Chevron seeks project funding through the HyVelocity Hub initiative, Yahoo! Finance reported.

That federally funded initiative is expected to reduce the total Chevron investment in the low-carbon energy project. Construction on the development, which is named Project Labrador, is expected to start in 2027, with commercial operations beginning in 2032, according to Yahoo! Finance.

The project could qualify for tax exemptions if the construction begins on schedule.

Yahoo! Finance reported that Chevron is targeting the 10-year 45V clean hydrogen production tax credit, which has an expiration date of Jan. 1, 2028. If the project proceeds on time, it could meet the deadline to access that incentive. The 45V clean hydrogen production tax credit could provide up to $3 per kilogram of clean hydrogen produced for 10 years.

Chevron already has significant operations in Port Arthur, according to cpechem.com.