Eclipse Energy has announced the results of an independent techno-economic assessment conducted by Wood that validates the commercial potential of the company's RenovaStrata™ H2 technology, a breakthrough approach designed to convert depleted oil reservoirs into hydrogen-producing assets.
Wood's assessment confirms RenovaStrata H2’s potential to deliver ultra-low-carbon hydrogen at commercial scale at a levelised cost as low as US$0.56/kg. The results outperformed the company’s target of US$0.70/kg and establish an economic case for subsurface hydrogen production from depleted oil reservoirs. This new pathway gives the industry a way to repurpose and extend the life of mature oil and gas infrastructure, while supporting growing demand for low carbon energy solutions, with Wood calculating an ultra-low carbon intensity of 0.076 kgCO2e/kgH2 for the technology.
These results validate RenovaStrata H2’s ability to produce ultra-low carbon hydrogen at a carbon intensity rate around 99% lower than the direct emissions from natural gas combustion. These results build on Eclipse's successful field demonstration and represent an important milestone in the company's commercialisation roadmap.
"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," commented 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 framework for commercial deployment provides a basis for future project development, investment evaluation, and scale-up. Unlike conventional approaches that treat mature reservoirs primarily as end-of-life assets, RenovaStrata H2 offers a compelling, scalable pathway to accelerate clean hydrogen deployment while reducing development requirements associated with greenfield projects.
“This assessment demonstrates the potential to create a new future for depleted oil fields,” added 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."