A major shift in the global clean energy race is unfolding as Wood Group partners with US-based Eclipse Energy to commercialize a breakthrough hydrogen production technology that could slash costs to just $0.50 per kilogram.
The agreement signals growing momentum behind next-generation hydrogen solutions, especially as industries search for scalable and cost-effective alternatives to fossil fuels. Eclipse Energy, headquartered in Houston, believes it has found a game-changing method by turning depleted oil reservoirs into hydrogen-producing assets.
Instead of building expensive new infrastructure, the company injects water, microbes, and nutrients into abandoned oil wells. These microbes actively break down residual hydrocarbons underground, releasing hydrogen while trapping most of the carbon dioxide safely within the reservoir. As a result, the process significantly reduces emissions and cuts costs at the same time.
This innovative approach stands out because it repurposes existing oil and gas assets. Consequently, it avoids the heavy capital investment typically required for new hydrogen plants. The model also opens fresh revenue streams for energy companies looking to transition into cleaner operations without abandoning legacy infrastructure.
Through the memorandum of understanding, Wood Group will bring its global engineering strength and advisory expertise to accelerate deployment. The company plans to support project design, lifecycle assessments, and cost analysis, ensuring that Eclipse’s technology can move quickly from pilot stages to full-scale commercialization.
Eclipse Energy has already begun advancing several projects this year. In addition, the company plans to release detailed cost and carbon intensity data within months, which could further validate its bold claims and attract global investors.
Speaking on the partnership, CEO Prabhdeep Singh Sekhon emphasized the need for practical solutions in the hydrogen sector. He explained that scaling hydrogen requires more than innovation alone. It demands realistic, cost-effective systems that can operate at global scale. By transforming end-of-life oil fields into productive hydrogen hubs, Eclipse aims to deliver exactly that.
Momentum is already building. The company recently completed a successful field trial in California and is preparing to launch new projects in West Texas. These developments suggest that subsurface hydrogen could soon become a viable competitor to both grey and green hydrogen.
Meanwhile, Wood Group sees significant potential in extending the life of mature oil assets while contributing to decarbonization goals. The company believes this collaboration could unlock a scalable source of lower-carbon hydrogen, positioning both firms at the forefront of the energy transition.
As global demand for clean energy intensifies, partnerships like this highlight a critical shift. Rather than abandoning traditional energy infrastructure, companies are increasingly reimagining it. If successful, this technology could redefine how hydrogen is produced and accelerate the transition toward a more sustainable energy future.
