Dubai – Wood and Eclipse Energy have confirmed the economic and environmental benefits of producing hydrogen in old oil wells, marking a potential turning point for the sector. A technical and economic assessment of the core technology used has proven production opportunities with low costs and carbon emission levels, according to an operational update followed by the Specialized Energy Platform.
The two companies assert that the proposed technology enhances commercial feasibility, enabling production at a cost of approximately half a dollar per kilogram. The concept involves reusing depleted oil reservoirs and utilizing hard-to-extract hydrocarbons remaining to produce hydrogen supported by biological reactions.
Estimates indicate that four Arab oil-producing countries are among the most prominent nations capable of exploiting old oil wells and preparing them for underground hydrogen production. These nations include Saudi Arabia, the United Arab Emirates, Algeria, and Egypt. This identification is based on their interest in hydrogen production, national strategies, or executed projects.
While other Arab oil-producing countries exist, hydrogen does not top their priorities. Wood and Eclipse Energy emphasize that producing hydrogen in old oil wells is a viable path regarding cost and emission reduction. This comes after Wood conducted an evaluation of the Renova Strata technology developed by Eclipse Energy.
The results were highly promising, estimating the levelized cost of production at approximately 0.56 dollars per kilogram, as published by Fuel Cell Works. This cost is more feasible than the company’s stated target of 0.70 dollars per kilogram, opening the door for underground production opportunities in depleted oil reservoirs.
This step gives existing oil and gas infrastructure new life by continuing to utilize it while expanding low-carbon solutions. Beyond cost, the technology reduces the carbon footprint by 0.076 kilograms of carbon dioxide equivalent per kilogram of hydrogen. This emission level is 99% lower compared to direct natural gas combustion emissions.
Prabdeep Singh Sekhon, CEO of Eclipse Energy, stated that field application results aligned with scientific and technical estimates. He added that Wood’s evaluation proved the availability of economic and environmental viability components, qualifying the project for commercial marketing stages.
Sekhon noted that these results signal a transformation from ideas and tests to commercially viable and widely scalable hydrogen projects. He highlighted that the solution offered by the two companies combines benefits and gains, sparing developers from choosing between reducing costs or emissions.
David Cole, Chief Operating Officer at Wood, discussed the potential and opportunities the technology offers the energy sector. He described transforming the task of closing old oil wells into a clean energy opportunity, providing a dual benefit by extending reservoir use and accelerating low-carbon hydrogen deployment.
Wood and Eclipse signed a memorandum of understanding last April to cooperate globally in promoting hydrogen production using existing oil assets. This transformation relies on deploying microorganisms in wells, treating the subsurface as a new horizon where old wells become bioreactors fed by nutrients and microbes.
This story was produced in the newsroom from the disclosed sources named above.
