Eclipse Energy said an independent techno-economic assessment by Wood has validated the commercial potential of its RenovaStrata H2 technology, which is designed to convert depleted oil reservoirs into hydrogen-producing assets.

The assessment found the technology could produce ultra-low-carbon hydrogen at a levelised cost as low as $0.56 per kilogram, below Eclipse’s target of $0.70/kg.

Wood also calculated a carbon intensity of 0.076 kgCO₂e/kgH₂.

The company said the technology could enable the reuse of mature oil and gas infrastructure while supporting demand for lower-carbon energy.

Eclipse said its carbon intensity is around 99% lower than direct emissions from natural gas combustion.

The findings build on a field demonstration and provide a framework for future project development, investment evaluation and commercial scale-up.

RenovaStrata H2 is designed to offer an alternative to greenfield hydrogen projects by using depleted reservoirs, potentially reducing development requirements and extending the productive life of existing oil and gas assets.

"Our field demonstration proved the science, and Wood's assessment shows RenovaStrata H2 has the potential to deliver the economics and emissions performance needed for commercialisation,” said Prabhdeep Singh Sekhon, CEO of Eclipse Energy. “The results provide a clear pathway from successful field demonstration to repeatable, commercial-scale hydrogen projects, without forcing a decision between lowering cost or lowering carbon."

"Our assessment provides an independent perspective on the opportunity presented by Eclipse's technology," said David Cole, Chief Operating Officer of Consulting at Wood. "The findings show incredible potential to impact the energy industry, reducing abandonment liabilities of depleted oil wells and creating opportunities for lower-carbon energy systems globally.”

“This assessment demonstrates the potential to create a new future for depleted oil fields,” said Sekhon. “We are not asking customers or investors to choose between low cost and low carbon. The assessment indicates the potential to deliver both, supporting industrial decarbonisation and long-term energy demand." -OGN/TradeArabia News Service