Hydrogen Offtake Agreements Explained: A Low-Risk/ High Return Strategy for Oil & Gas Companies
The energy landscape is rapidly shifting, and oil and gas operators are looking for practical solutions to both meet emissions caps and capitalize on underutilized gas resources. ESSNA’s™ modular hydrogen production system offers a clear, actionable path to convert low-margin sales, flared and stranded gas into high-value hydrogen, creating a steady, predictable revenue stream.
Here’s how our solution works step-by-step:
1. The Gas Supply Agreement: Securing Your Feedstock
The first step is to establish a natural gas supply agreement between ESSNA™ and your company. We offer a negotiable feedstock term sheet, securing a specific amount of natural gas. This supply agreement ensures that ESSNA™ can access the gas you want to convert into hydrogen, without disrupting your existing operations.
Our partnership model allows your company to continue its operations as usual, with no changes to the way you’ve been managing gas production for decades. ESSNA™ takes on the heavy lifting of the conversion process, while you continue to focus on your core business.
2. On-Site Modular Hydrogen Production
Once the gas is supplied, we deploy our modular hydrogen production system directly on-site. This is a key advantage of our solution: we produce hydrogen where the gas is, using compact, 40-foot sea can units that are easy to transport and install.
These modular systems are field-proven and already operational across North America, so you don’t have to worry about untested technologies. The hydrogen production units are designed to integrate seamlessly with your existing infrastructure, minimizing operational disruptions while maximizing efficiency.
3. Converting Gas to Hydrogen: The Process
The hydrogen produced is a 59Hydrogen™ Fuel Cell Grade Hydrogen. This is done in a safe and controlled environment, ensuring the hydrogen is produced to the highest standards to purity requirements and delivered safely. Some O&G producers opt to use a % of this hydrogen for on-lease activities, reducing their carbon intensity. The balance of the hydrogen is distributed to ESSNA™ contracted off-take.
4. Offtake Agreements: Securing Revenue from Hydrogen
From day one, the offtake of the hydrogen we produce is fully contracted. Delivering natural gas price certainty for the O&G producer, eliminating market uncertainty.
5. Emissions Compliance and ESG Benefits
Hydrogen will support your process in lowering emissions and strengthening your company’s Environmental, Social, and Governance (ESG) performance. With regulators and investors increasingly focused on carbon intensity reduction, hydrogen is one of a few measurable and bankable approach’s achieving this.
6. A Partnership for the Long-Term
Our relationship with oil and gas companies is designed to be long-term. We’re committed to providing ongoing support and ensuring the continued success of your hydrogen production operation. ESSNA™ takes on the operational complexities—capital deployment, engineering design, system build, and maintenance—while you enjoy the financial and diversification reward from the guaranteed revenue stream.
Our clients benefit from a predictable, high-value revenue source that strengthens their position in the energy market.
Start Converting Your Gas Into Hydrogen Today
ESSNA™ offers an immediate, high-value solution for monetizing underutilized natural gas. With our modular hydrogen systems, you can generate steady revenue, reduce emissions, and ensure compliance with regulations—all while enhancing your ESG performance.
Ready to learn how ESSNA™ can help you convert your gas assets into a reliable source of hydrogen revenue? Looking forward to further discussion.
Contact us to learn how easy it is to deploy hydrogen production directly at your site. We pay you a guaranteed rate for the gas you supply.
