UK onshore oil and gas firm IGas Energy has entered into heads of terms with US manufacturer BayoTech to produce hydrogen from some of its assets.
BayoTech is a hydrogen generation technology company which originated in Sandia National Laboratories.
Headquartered and produced in New Mexico, it offers hydrogen production solutions through rentals, leases and sales.
Its hydrogen generators are said to be more efficient than legacy steam methane reformers, leading to lower carbon emissions and low-cost hydrogen.
London-listed IGas has identified two of its existing sites, in the south-east of England, where the gas resource can be reformed into hydrogen which will then be sold to local or national customers.
IGas chief executive Steve Bowler said: “I am very pleased to announce our partnership with BayoTech, a leading technologies business in hydrogen generation systems.
“Preliminary engineering work has confirmed that gas at these sites is suitable for BayoTech’s innovative, modular system.
“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.”
BayoTech CEO Mo Vargas said: “IGas’ leadership is a great example of where locally produced resources can be used in the energy transition to significantly reduce the carbon intensity associated with long distance transportation of hydrogen, support local jobs and provide the UK with low cost hydrogen to accelerate the new economy.
“We are excited to be partners with IGas and look forward to the transformative plans we have together in providing low cost, low/no carbon hydrogen to the UK.”