The Potential of Geological Hydrogen: A Promising Future

Geological hydrogen, a revolutionary energy source with low environmental impact, is shaping the world's energy future.

Share:

Blue Hydrogen

The potential of geological hydrogen as a clean, inexhaustible energy resource is capturing the world’s attention. However, despite this wave of enthusiasm, major challenges remain before this resource can be fully exploited. Geological hydrogen, long neglected, is now attracting increasing attention, opening up new prospects for our energy future.

A long-neglected resource

Research geologist Geoffrey Ellis, of the U.S. Geological Survey, points out that geological hydrogen is now at the heart of the energy industry’s concerns. Companies are increasingly turning to this resource in search of new opportunities. Indeed,hydrogen has become a potential source of revenue, in response to growing market demand.

Steadily rising demand

According to S&P Global data, global gas demand is set to grow significantly over the coming decades. From 97 million tonnes a year today, this demand is set to rise to 119 million tonnes a year in 2030, and 265 million tonnes a year in 2050. Faced with this growing demand, low-carbon hydrogen should gradually replace fossil fuel-based hydrogen production, which will decline from 2037 onwards.

But how is geological hydrogen different? According to Geoffrey Ellis’ estimates, there is an impressive range of potential production, from thousands of megatons to billions of megatons. This considerable quantity, although partially inaccessible, could play a major role in meeting future demand.

This clean, economical fuel would pave the way for greater penetration of hydrogen in the industrial, transport and power generation markets, reducing emissions without adding to costs. In addition, government policies such as the Inflation Reduction Act in the United States provide substantial subsidies for low-carbon hydrogen production projects, encouraging the development of this promising technology.

The challenges of low-carbon hydrogen adoption

Geological hydrogen has an exceptionally low carbon intensity, estimated at 0.37 kg CO2 equivalent per kilogram of hydrogen. This figure, which takes into account well casing and hydrogen emissions, is well below the Inflation Reduction Act limit of 0.45 kg CO2 equivalent/kg hydrogen. As a result, geological hydrogen could benefit from substantial tax credits, making it even more attractive to exploration companies.

Paul Harraka, Managing Director of Koloma, a pioneering company in the field of geological hydrogen, points out that the PTC hydrogen legislation reflects the importance of producing clean, economical hydrogen. It encourages technologies such as geological hydrogen, which have the lowest carbon emissions.

Financial and technical challenges

Exploiting this renewable resource is part of the world’s crucial decarbonization objectives. But the key question lies in overcoming the financial and technical challenges associated with geological hydrogen exploration.

Unlike traditional financing models, geological hydrogen, as an emerging technology, requires a different approach. Projects require a supply purchase agreement to guarantee economic viability, in the absence of known production volumes and future sales.

Companies like Koloma have won the backing of major venture capital funds, testifying to the growing interest in this technology. However, funding for geological hydrogen remains relatively limited compared with massive investment in other forms of hydrogen, such as blue and green hydrogen.

Geological hydrogen, while a disruptive technology in terms of pricing, cannot by itself replace fossil fuels on a global scale. It has its place as a complementary source to the other forms of hydrogen currently under development, each with its own best applications.

One of the main obstacles to the widespread adoption of low-carbon hydrogen is the cost differential with conventional hydrogen. However, the results of exploration wells and advances in research could help fill this gap.

The future of energy at stake

As companies prepare to explore geological hydrogen wells, the giants of the oil and gas industry are keeping a close eye on developments in the sector.

Geological hydrogen represents the hope of creating an inexhaustible source of energy, providing electricity, fuel and raw materials on a continuous basis, meeting the energy needs of our changing world. Progress in the exploration of this resource will pave the way for the establishment of a long-term hydrogen infrastructure base, helping to shape our energy future.

The question is not whether geological hydrogen exists underground, but how to locate it and develop the tools needed to exploit it.

HydrogenXT secures a $900mn agreement with Kell Kapital Partners Limited to develop the first ten local zero-carbon blue hydrogen plants along key logistics corridors in the United States.
Elogen completes delivery of a 2.5 MW proton exchange membrane electrolyser for the Baseload Power Hub, linked to the Hollandse Kust Noord offshore wind farm and operated by CrossWind joint venture.
Fotowatio Renewable Ventures joins forces with Envision Energy for the H2 Cumbuco project, aiming for a 500MW green ammonia plant targeting Brazilian, European, and Asian markets.
Element 2 strengthens its partnership with HRS to install a mobile hydrogen station in Glasgow, as part of its expansion strategy for its refuelling network in the United Kingdom and Ireland.
Global hydrogen development, supported by more than 1,500 ongoing projects and significant investments, is driving strong demand for insurance coverage, with potential estimated at over USD3bn in annual premiums by 2030.
ArcelorMittal Brazil begins a collaboration with Utility Global to develop a clean hydrogen project using the patented H2Gen system, aimed at producing up to 3 tons per day at the Juiz de Fora plant.
ENERTRAG announces the acquisition of a plot in Prenzlau to install a 130 megawatt green hydrogen production unit, with a planned investment of €300 mn, thereby supporting the regional economy and local industrial sector.
H2APEX Group SCA has completed a EUR30mn ($32.5mn) capital increase to finance the acquisition of HH2E Werk Lubmin GmbH and support the development of its hydrogen project in Germany. —
Next Hydrogen launches the largest onsite clean hydrogen production and distribution station in Ontario, capable of supplying up to 650 kg per day for powering fuel cell forklifts.
A 5,500-horsepower harbour vessel was bunkered with green ammonia at the Dalian terminal, marking the creation of a full value chain for this fuel and a technical milestone for the maritime sector.
Air Liquide begins construction of the ELYgator electrolyser in Rotterdam, a 200 MW project, supported by the Dutch government and an investment exceeding €500 mn.
A pilot project in Germany aims to produce green hydrogen at sea directly from untreated seawater on offshore wind farms, using marine bacteria and robust materials.
BP withdraws from the Australian Renewable Energy Hub, a major renewable hydrogen and ammonia project in the Pilbara region, marking a new stage for energy investments in Australia.
Next Hydrogen raises CAD1.5mn from its management and a commercial lender to strengthen its cash flow and retain teams, while maintaining its review of financial and strategic solutions.
The first European citizen funding campaign dedicated to green hydrogen enabled Lhyfe to collect €2.5mn from nearly 1,200 investors, strengthening the development of new sites in France and Germany.
In the face of renewable energy intermittency, Power-to-Hydrogen-to-Power (PtP) technology could revolutionize energy storage. However, its adoption still depends on cost reduction and efficiency improvements.
South Korean company YPP and Kazakh Invest have signed a framework agreement for the development of a green hydrogen production project in Kazakhstan, with investments potentially reaching $3.1 billion.
The Dutch government has granted major funding to HyCC for its H2eron electrolysis project, aimed at producing renewable hydrogen in the Delfzijl industrial zone.
ACWA Power has signed several agreements with European partners to develop a green energy export chain between Saudi Arabia and Europe, as part of the India-Middle East-Europe Economic Corridor project.
Manufacturer Stellantis halts production of its hydrogen-powered commercial vehicles, citing a lack of commercial prospects and an insufficient market, according to a statement released by the automotive group.