Texan start-up target disused oil wells for low-cost hydrogen extraction

Engineering firm Wood will work with start-up Eclipse Energy on producing hydrogen from disused oil wells using microbes at a target price of $0.5 per kilogramme.

A newly signed memorandum of understanding (MOU) between the pair looks to repurpose existing oil reservoirs into hydrogen extraction sites using Eclipse’s subsurface hydrogen technology.

The firm – formerly Gold H2 – says its technology injects water, microbes, and nutrients into depleted oil wells, effectively turning them into underground bioreactors which break down remaining hydrocarbons into hydrogen.

According to the Texas-based company, it can deliver hydrogen at a price equivalent to natural gas. In June 2025, it claimed to have produced its from an oil field in California’s San Joaquin Basin.

While details remain thin, Eclipse says it will progress “multiple projects this year” and identifies oilfield services company, Weatherford, as an execution partner.

Specific extraction sites, however, remain unidentified.

Wood would contribute engineering design, assessment, and expertise for the prospective projects.

Dan Carter, President of Consulting at Wood, said the MOU could deliver a scalable source of lower-carbon hydrogen.

“This technology has the potential to extend the life of mature assets and oil fields,” he added.

Geologic hydrogen has seen interest ramp up as firms examine cheaper ways to produce low-cost hydrogen. However, the pathway’s viability remains unproven.

Germany-headquartered recently revealed a similar project aimed at hydrogen production from disused wells in Europe.