Techno-economic Feasibility of In-situ Hydrogen Production from Petroleum Reservoirs

The global shift toward clean energy has intensified interest in innovative hydrogen production methods. In-situ combustion gasification (ISCG) of hydrocarbons within petroleum reservoirs offers a promising approach for generating hydrogen directly from subsurface formations. This study systematically evaluates the techno-economic feasibility of ISCG by integrating numerical modeling, experimental validation, and economic assessments to determine optimal conditions for large-scale implementation. First, a comprehensive full-field numerical model was developed using Computer Modeling Group (CMG) simulators, incorporating a novel SARA-based compositional framework to represent hydrogen generation mechanisms in heavy and light oil reservoirs. The model was validated against published experimental and numerical data. Key technical factors including injection strategies, reservoir conditions, combustion front propagation, hydrogen diffusion, well spacing, and oil co-production effects were analyzed. Simulation results identified optimal reservoir and injection conditions for maximizing hydrogen yield while mitigating operational challenges. Sensitivity analyses revealed that hydrogen production depends on reservoir porosity, permeability, temperature, injection pressure, and injected fluid composition. A series of optimization studies provided a practical framework for assessing reservoir suitability. Energy efficiency was evaluated by comparing total energy input with recoverable hydrogen energy relative to conventional oil recovery. In the second phase, experimental investigations using Accelerating Rate Calorimetry (ARC) analyzed the oxidative behavior of crude oil and its impact on hydrogen yield. These experiments provided critical insights into reaction kinetics and the combustion characteristics of different crude oil compositions. The findings were integrated into a SARA-based modeling framework in CMG STARS, improving hydrogen yield predictions under various operational conditions and enhancing the understanding of in-situ gasification dynamics. The third phase assessed the economic viability of ISCG through simulation-based cost analysis and field data interpretation. Capital and operational costs from Proton Technologies were used to estimate production expenses, revenue potential, and the cost per kilogram of hydrogen. A new techno-economic model developed using the GoldSim platform, integrated CMG STARS simulation outputs under multiple operational scenarios. Economic assessments highlighted that reservoir quality significantly impacts profitability, with high-quality reservoirs outperforming lower-quality formations in hydrogen and oil co-production. Despite its hydrogen generation potential, revenue remains predominantly oil-driven due to oil’s higher market value. Consequently, standalone hydrogen production in new fields is not yet economically competitive with oil recovery. This research establishes a novel framework for ISCG, demonstrating its potential contribution to the global clean energy transition. However, economic viability remains a key challenge. Co-production in high-quality reservoirs, combined with advancements in key technical aspects, membrane separation, policy incentives, and carbon pricing, may enhance the feasibility of hydrogen extraction from petroleum reservoirs. These findings provide a foundation for future research aimed at improving the efficiency, scalability, and economic competitiveness of in-situ hydrogen production.