Vallourec has signed a memorandum of understanding with Baker Hughes aimed squarely at the compression storage interface, a segment where efficiency losses and capital intensity frequently undermine project bankability.
The MOU focuses on integrating Vallourec’s Delphy underground hydrogen storage system with Baker Hughes’ compression solutions. The stated objective is not simply technical compatibility but optimization of compression storage configurations and operating pressures by application. That distinction matters. In green hydrogen systems, compression is often specified conservatively to accommodate peak demand scenarios or uncertain downstream requirements, leading to overdesigned systems with higher energy consumption and larger surface footprints than necessary.
Delphy is positioned as a market ready underground storage solution capable of vertically storing up to 100 tons of compressed green hydrogen. Vallourec emphasizes three attributes that align with current project developer constraints: high pressure tolerance, a limited surface footprint, and compliance with existing industrial safety expectations. The solution has already been certified by Bureau Veritas and DNV, an important signal for projects seeking to move from concept to final investment decision without protracted permitting uncertainty.
However, certification alone does not address the systemic challenge facing large scale hydrogen storage. Underground storage economics are tightly coupled to compression efficiency. Compressing hydrogen to higher pressures increases storage density but also raises electricity consumption, equipment wear, and cooling requirements. Conversely, lower pressure systems reduce compression energy but require larger storage volumes or more wells, increasing capital expenditure. The collaboration’s emphasis on defining efficient operating pressures for specific use cases suggests a recognition that there is no universal optimal pressure regime for green ammonia, synthetic fuels, green steel, or power sector balancing.
Baker Hughes’ role centers on compression technologies designed to reduce overall plant footprint and energy penalties. In practice, this integration could allow developers to engineer compression and storage as a single system rather than two sequentially optimized components. For industrial hydrogen consumers operating on thin margins, even incremental reductions in parasitic energy loads can materially affect levelized hydrogen costs over a project’s lifetime.
The scope of the collaboration also extends beyond hydrogen production sites to downstream users such as data centers, which are increasingly cited as potential anchor customers for clean power and hydrogen based backup systems. While data center demand profiles differ from continuous industrial processes, they share a sensitivity to reliability and space constraints, reinforcing the relevance of compact, underground storage coupled with optimized compression.
