IGas Energy plc said it aimed to produce hydrogen from its existing methane resources after entering a heads of agreement with a US manufacturer of modular hydrogen generation systems.
The oil and gas explorer and developer said it had identified two of its exisiting sites in the south east of England where the gas resource could be reformed into hydrogen before being sold to locally and nationally.
Based in New Mexico, BayoTech is a hydrogen generation technology company offering hydrogen production solutions through rentals, leases, sales and gas worldwide.
IGas said that BayoTech’s on-site hydrogen generators were more efficient than legacy steam methane reformers and would lead to lower carbon emissions and low-cost hydrogen.
IGas has been operating in onshore oil and gas for more than 30 years and has has interests in Scotland, the North West, East Midlands and the Weald Basin in Southern England.
The Weald Basin provides some 50% of IGas’s current production from a net acreage of 11 fields.
These have 10 producing wells ranging from Stockbridge near Winchester to Palmers Wood near Gatwick, and now includes the Singleton field in West Sussex. IGas said it had produced more than 21 million barrels of oil to date.
“Preliminary engineering work has confirmed that gas at these sites is suitable for BayoTech’s innovative, modular system,” said chief executive Steve Bowler.
“We look forward to working with BayoTech to be well placed in the growing hydrogen economy which will add value to our existing gas resource through the delivery of cost effective hydrogen.”
Last month IGas announced plans to enter the geothermal energy sector in Staffordshire in a contract with GT Energy. (bit.ly/2TwcIZJ)