plugging in

Texas gas station favorite scores Mercedes-Benz partnership for EV chargers

Mercedes-Benz HPC North America says it will build EV charging hubs at most Buc-ee’s stores, starting with about 30 hubs by the end of 2024. Photo courtesy of Mercedes

Buc-ee’s, the beloved Lake Jackson-based chain of convenience stores, has plugged into a partnership with a Mercedes-Benz business unit to install electric vehicle charging stations at Buc-ee’s locations.

Mercedes-Benz HPC North America says it will build EV charging hubs at most Buc-ee’s stores, starting with about 30 hubs by the end of 2024. Some Buc-ee’s hubs already are being set up and are scheduled to begin supplying EV power by the end of this year.

Mercedes-Benz HPC, a subsidiary of the German automaker, is developing a U.S. and Canadian network of EV charging stations. All of the stations will run solely on renewable energy.

“Buc-ee’s values people and partnerships,” Jeff Nadalo, general counsel at Buc-ee’s, says in a news release. “Our new collaboration with Mercedes-Benz HPC North America will continue our traditions of elevated customer convenience and excellent service that have won the hearts, trust, and business of millions in the South for more than 40 years.”

Buc-ee’s — hailed for its squeaky-clean restrooms, abundance of fuel pumps, and unique food — operates 34 supersized convenience stores in Texas and 12 locations in other states. Another seven locations are under construction in Texas, Colorado, Kentucky, Mississippi, and Missouri.

“Mercedes-Benz HPC North America's collaboration with Buc-ee’s represents an important moment in our pursuit of a national charging network that sets a new standard in both convenience and quality,” says Andrew Cornelia, president and CEO of Mercedes-Benz HPC.

“Within a remarkably short period,” Cornelia adds, “we’ve made significant strides towards opening several charging hubs at Buc-ee’s travel centers. Buc-ee’s strategic locations along major travel routes, combined with their commitment to clean and accessible amenities, aligns perfectly with our vision.”

In January 2023, Mercedes-Benz announced plans to install 10,000 EV chargers worldwide, including North America, Europe, and China. Mercedes-Benz drivers will be able to book a charging station from their car, but the network will be available to all motorists.

“The locations and surroundings of the Mercedes-Benz charging hubs will be carefully selected with wider customer needs in mind. Our best possible charging experience will therefore come with food outlets and restrooms situated nearby,” says Mercedes-Benz HPC.

Each hub will feature four to 12 chargers and ultimately as many as 30 chargers.

Mercedes-Benz says more than $1 billion is being invested in the North American charging network, which is set to be completed by 2029 or 2030. The cost will be split between the automaker and solar power producer MN8 Energy, a New York City-based spinoff of banking giant Goldman Sachs.

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A View From HETI

Chevron plans to launch its first AI data center power project in West Texas in 2027. Photo via Chevron.com

Two of the Houston area’s oil and gas goliaths, Chevron and ExxonMobil, are duking it out in the emerging market for natural gas-powered data centers—centers that would ease the burden on electric grids.

Chevron said it’s negotiating with an unnamed company to supply natural gas-generated power for the data center industry, whose energy consumption is soaring mostly due to AI. The power would come from a 2.5-gigawatt plant that Chevron plans to build in West Texas. The company says the plant could eventually accommodate 5 gigawatts of power generation.

The Chevron plant is expected to come online in 2027. A final decision on investing in the plant will be made next year, Jeff Gustavson, vice president of Chevron’s low-carbon energy business, said at a recent gathering for investors.

“Demand for gas is expected to grow even faster than for oil, including the critical role gas will play [in] providing the energy backbone for data centers and advanced computing,” Gustavson said.

In January, the company’s Chevron USA subsidiary unveiled a partnership with investment firm Engine No. 1 and energy equipment manufacturer GE Vernova to develop large-scale natural gas power plants co-located with data centers.

The plants will feature behind-the-meter energy generation and storage systems on the customer side of the electricity meter, meaning they supply power directly to a customer without being connected to an electric grid. The venture is expected to start delivering power by the end of 2027.

Chevron rival ExxonMobil is focusing on data centers in a slightly different way.

ExxonMobil Chairman and CEO Darren Woods said the company aims to enable the capture of more than 90 percent of emissions from data centers. The company would achieve this by building natural gas plants that incorporate carbon capture and storage technology. These plants would “bring a unique advantage” to the power market for data centers, Woods said.

“In the near to medium term, we are probably the only realistic game in town to accomplish that,” he said during ExxonMobil’s third-quarter earnings call. “I think we can do it pretty effectively.”

Woods said ExxonMobil is in advanced talks with hyperscalers, or large-scale providers of cloud computing services, to equip their data centers with low-carbon energy.

“We will see what gets translated into actual contracts and then into construction,” he said.

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