Eclipse Energy and Wood Partner to Turn Depleted Oil Fields into Hydrogen Assets

Eclipse Energy and Wood have entered into a strategic collaboration to accelerate the development of hydrogen production from end-of-life oil fields, signalling a shift toward repurposing legacy fossil fuel infrastructure for the low-carbon economy.

The agreement, structured as a memorandum of understanding, positions Wood as a preferred engineering and advisory partner as Eclipse advances its subsurface hydrogen technology from pilot stage to commercial deployment. The approach centres on converting depleted oil reservoirs into hydrogen-producing systems, leveraging existing wells and infrastructure to reduce costs and development timelines.

Unlike conventional hydrogen production methods, which often require significant upfront investment in new facilities, Eclipse’s model aims to utilise mature oil fields as productive assets once their primary extraction life has ended. This strategy not only lowers capital expenditure but also offers a potential pathway for oil and gas operators to transition assets into cleaner energy production while maintaining economic value.

Executives from both companies framed the partnership as a pragmatic step toward scaling hydrogen. Eclipse emphasised the role of subsurface resources as a “next frontier” for energy production, while Wood highlighted the opportunity to extend the lifecycle of existing assets while contributing to emissions reduction goals.

Under the collaboration, Eclipse will lead technology development and project origination, working alongside oilfield services partner Weatherford. Wood will provide engineering design, consulting, and analytical support, including lifecycle assessments and cost modelling to evaluate the viability of projects across different markets.

The initiative comes as interest grows in alternative hydrogen production pathways beyond traditional electrolysis and steam methane reforming. By tapping into geological formations and existing infrastructure, subsurface hydrogen production could offer a scalable and potentially lower-cost option, particularly in regions with extensive legacy oil and gas assets.

Projects under the partnership are already underway, with further data on cost competitiveness and carbon intensity expected in the near term. If successful, the model could open up a new segment of the hydrogen market—one that bridges the gap between legacy energy systems and emerging clean technologies while accelerating the transition to lower-carbon fuels.