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.

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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.

Lhyfe becomes the first French producer to obtain European RFNBO certification, delivering the first batches of certified hydrogen and opening access to new support mechanisms for the industrial sector.
Tree Energy Solutions and CPC Finland will produce 125,000 tonnes annually of e-NG at the Finnish port of Rauma, targeting European and international markets with a significant investment.
The European Commission grants €3.5mn to support preparatory work for a Franco-German cross-border network aimed at transporting hydrogen between the Grand Est region and Baden-Württemberg starting in 2029.
French company McPhy Energy awaits a court decision regarding offers submitted during its judicial reorganization, paving the way for probable liquidation and potential delisting of its shares.
The majority-Indigenous-owned Canadian manufacturer HyVera Distributed Energy is introducing an eCat pellet that instantly produces ultra-pure green hydrogen without external electricity and is counting on two pilot plants to simplify industrial supply.
Underground hydrogen storage, essential to support its growth, continues to face significantly higher costs than natural gas storage, along with major technical challenges hindering its competitiveness against conventional energies.
Singapore-based hydrogen specialist Hydrexia seals a protocol with Indonesian gas giant Samator to deploy purification, transport and storage of hydrogen, betting on rapidly growing local demand and export outlets to the Asia-Pacific region.
Cadiz Inc. signs a memorandum of understanding with British company Hoku Energy for a large-scale energy project including green hydrogen, solar power, and digital infrastructure in the Californian desert, projecting annual revenues of up to $10mn.
BP indefinitely halts its blue hydrogen project at the Whiting refinery in Indiana, raising questions about the future of federal funding and the impact on regional plans for a decarbonized hydrogen sector in the United States.
The Polish energy group ORLEN receives a non-repayable grant of €382 million from the National Recovery Plan to finance its renewable and low-emission hydrogen production initiatives.
Georgia Power and Mitsubishi Power announce successful completion of an unprecedented test incorporating 50% hydrogen into an advanced gas turbine, reducing CO2 emissions by 22% compared to natural gas alone.
Neoenergia has begun construction of one of Brazil's first green hydrogen plants, aimed at supplying heavy and light vehicles, with an investment exceeding 30 million Brazilian reais ($5.99mn).
The SA-H2 fund, supported by international partnerships and local institutional backing, mobilises 37 million USD to develop export-oriented green hydrogen from South Africa, with an initial concrete project announced.
Turbotech reports successful combustion testing of a hydrogen turboprop, developed through digital simulation with Ansys, marking an industrial milestone in light aircraft using alternative fuel.
France Hydrogène responds to the Cour des Comptes report published on June 5, criticising an incomplete reading of updated targets and the economic impacts of decarbonised hydrogen development.
The Belfort Commercial Court has opened a judicial reorganisation procedure for McPhy, while a renewed call for tenders for its asset sale is now set to close on 13 June.
Plug Power CFO Paul Middleton acquired 650,000 shares on the market, affirming his support for the long-term strategy of the hydrogen-focused company.
The Canadian government is funding an initiative to support 40 SMEs in British Columbia’s hydrogen sector, aiming to increase foreign investment and expand international market share.
Developer CWP Global has paused its $40 billion AMAN project in Mauritania due to a lack of buyers for green ammonia despite favourable local conditions.
A study reveals that the profitability of African green hydrogen exports to the European Union depends on political support from Europe, despite the abundance of ongoing projects on the continent.