© Vallourec

Vallourec has signed a memorandum of understanding with Baker Hughes to integrate underground hydrogen storage with industrial-scale compression systems, targeting the growing green hydrogen market.

Context: tackling storage and compression costs

The agreement reflects increasing efforts across the hydrogen value chain to address storage and compression — two capital-intensive components that shape project economics as developers seek to scale production for ammonia, fuels and steelmaking. As more electrolysis projects move from pilot to commercial phase, the ability to manage high-pressure gaseous hydrogen efficiently is becoming central to cost competitiveness.

Combining Delphy storage with compression technology

Under the MoU, the companies will combine Vallourec’s Delphy underground hydrogen storage technology with Baker Hughes’ compression equipment. The partnership will focus on optimising compression–storage configurations and determining operating pressures tailored to different applications, with the stated aim of lowering total cost of ownership for clean hydrogen systems.

Delphy stores gaseous hydrogen in vertical pipe assemblies installed at depths of up to 100 metres. According to Vallourec, the system can hold up to 100 tonnes of hydrogen and has been certified by Bureau Veritas and DNV. The company says the configuration offers a limited surface footprint, an advantage for industrial sites facing space constraints, and is already operating a demonstrator in northern France.

Expanding hydrogen portfolios

Baker Hughes manufactures hydrogen compression systems ranging from refuelling stations to large petrochemical installations. Compression is required to increase hydrogen pressure before storage or transport, but it can add materially to plant footprint and electricity demand. Philippe Guillemot, Vallourec’s chief executive, said the companies’ capabilities were “highly complementary”, describing compression as “a critical step before the storage of compressed hydrogen”.

Baker Hughes has expanded its hydrogen portfolio in recent years, including plans to acquire cryogenics specialist Chart Industries and partnerships such as one with Australian storage company Provaris. The group’s technologies span green, blue and turquoise hydrogen production, as well as liquefaction, compression and ammonia processing.

Implications for hydrogen project economics

For Vallourec, traditionally known for seamless tubular products for the oil and gas sector, the tie-up underscores its push to position itself in hydrogen infrastructure. For developers and investors, integrated compression and storage packages may help reduce project complexity, though the commercial viability of large-scale green hydrogen will continue to depend on power costs, utilisation rates and policy support.