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