Canadian start-up ProtonH2 is pressing ahead with plans to produce up to 500 tonnes of low-carbon hydrogen per day from disused oil and gas assets, at prices it believes could be less than $1/kg.
The Calgary-headquartered firm said it had selected Propak Systems as its EPC partner for the planned Project Apollo following the completion of pre-front-end engineering and design (FEED).
With ambitions to start construction of the project in Q4 2024, the project near Kerrobert, Saskatchewan, will use ProtonH2’s ISHG™ process of injecting dioxygen (O2) into oil wells which reacts with hydrocarbons to generate high-concentration hydrogen syngas.
Syngas can either be sold or separated into hydrogen for sale. However, the process does produce carbon dioxide (CO2). The company says ISHG “naturally sequesters” 15-20% of the CO2.
Project Apollo is hoped to make its first hydrogen deliveries in H1 2025, in a bid to showcase the technology’s potential in repurposing existing infrastructure, while demonstrating “unprecedented cost efficiencies.”
“This project is not just about producing hydrogen,” said Paul Sandhu, CEO of ProtonH2. “It’s about setting new standards for cost efficiency and sustainability in the energy sector.”
Other start-ups have been looking to old oil wells in a bid for low-cost hydrogen. In July, Houston-based Gold H2 announced plans to trial its biotechnology which converts crude oil into hydrogen with select oil and gas owners.
Read more: Start-up plans to generate low-cost hydrogen from old oil wells with microbes
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