Eclipse Energy, Wood To Scale Hydrogen Production Through Repurposing Depleted Oil Reservoirs
Climate tech company Eclipse Energy is going to work with multinational engineering and consulting firm Wood to boost production and development of subsurface hydrogen.
The two companies announced the signing of a memorandum of understanding (MOU) to partner on the commercialization of scaled hydrogen production from depleted oil and gas reservoirs.
Hydrogen is an energy-dense gas that does not contain carbon in its molecular chain. So, it does not emit carbon dioxide at the point of use.
Geoscience and reservoir engineer Eclipse Energy will combine its resources with the project management experience of Wood in the energy and materials sector to try and transform end-of-life oil fields into hydrogen-generating assets.
Eclipse will originate the commercial-focused projects while Wood will lead in project design, microbiology expertise and levelized cost of hydrogen analysis. By revitalizing these depleted reservoirs, the companies believe existing infrastructure can be extended for decades and produce low-cost, sustainable hydrogen, avoiding high capital expenditure associated with greenfield-related hydrogen developments.
“Scaling hydrogen requires more than innovation—it requires pragmatism,” said Eclipse Energy CEO Prabhdeep Singh Sekhon in a statement. “By converting end-of-life oil fields into productive hydrogen assets, we can deliver a pathway that is both economically and operationally viable.”
Wood representatives add that this project’s model challenges the perception that clean hydrogen must come at a premium. Repurposing depleted oil fields into subsurface bioreactors will reportedly allow the companies to produce hydrogen for less than $0.50/kg (kilograms) without requiring potable water at $0.35 kg (CO2)/kg H2.
For comparison, hydrogen production from natural gas ranges from USD $0.50 to USD $1.70 per kg among most regional gas prices. Current renewable energy methods to produce hydrogen can range from $3 to $8 per kilogram, according to the Intentional Energy Agency (IEA).
“This technology has the potential to extend the life of mature assets and oil fields, while delivering a scalable source of lower-carbon hydrogen,” said Dan Carter, president of consulting at Wood.
There’s been a lot of work by numerous energy firms trying to upscaling hydrogen. Hydrogen is an abundant element, but must be separated from methane gas via carbon-intensive reforming or by electrolysis splitting the H2 out of water. About 95% of all hydrogen currently produced is by steam reforming of natural gas.
The complications in scaling and building out hydrogen infrastructure is due to the requirement of needing to be stored at extremely high pressure amid its very low density properties at Earth’s atmospheric pressure (approximately 1 bar, 14.7 psi). It requires nearly 350-700 bar, equivalent to 5,000–10,000 psi, 100 to 200 times the amount of the average car tire pressure.
Eclipse Energy is working to bypass most of the need for surface-level pressurized tanks entirely by gearing its efforts toward producing and storing hydrogen properties underground within depleted reservoirs. The companies say they plan to publish levelized costs of hydrogen and carbon intensity results within the first half of this year under this new partnership.
