When Mali’s Bourakébougou gas field revealed a steady stream of near-pure hydrogen from a shallow reservoir, it disrupted long-held assumptions about hydrogen availability—and reignited global interest in what’s now called “natural hydrogen.”
As of late 2023, over 40 companies had launched exploration efforts for this overlooked resource, and that number may have doubled in 2024, fueled by early signs of commercial viability and a pressing need for low-carbon alternatives.
Yet despite its promise, natural hydrogen still lacks regulatory footing in most jurisdictions. Without clear classification as a resource, hydrogen remains sidelined in national mining and energy policies—hindering investment and delaying exploration. Countries like the U.S., Canada, and India have significant geological potential but minimal legislative readiness. This regulatory lag is increasingly at odds with global energy ambitions.
Hydrogen demand is not speculative; it’s already embedded in essential industrial processes. Refining accounts for roughly 44% of global hydrogen use, followed by ammonia and fertilizer production at 34%, and steelmaking at 5%. These sectors are notoriously difficult to decarbonize. The challenge is that nearly all of today’s hydrogen—more than 95%—is derived from fossil fuels, contributing 2.5% of global CO₂ emissions.
Green hydrogen, produced via electrolysis using renewable power, has been posited as the solution. However, it remains costly and infrastructure-intensive. In contrast, natural hydrogen—formed via geological processes like serpentinization or radiolysis—can emerge with a carbon footprint equal to or lower than that of green hydrogen. Critically, its production does not depend on surface water, an advantage in arid regions facing climate stress.
Exploration Potential vs. Policy Gaps
The U.S. Geological Survey estimates the Earth holds enough natural hydrogen to meet global demand for 200 years. This figure, while promising, comes with caveats: the resource is largely unproven and unevenly mapped. Exploration strategies are still in their infancy, and without consistent permitting frameworks, investors face significant uncertainty.
The infrastructure required to extract natural hydrogen resembles traditional hydrocarbon drilling. However, adjustments in drilling techniques, well completion, and gas handling are necessary. Still, the surface footprint of a natural hydrogen operation is potentially far smaller than that of a green hydrogen project, which demands land for renewables and electrolyzers.
South Australia offers a glimpse of how proactive legislation can catalyze exploration. Once specific regulations for natural hydrogen were introduced, dozens of exploration applications followed. This suggests that the main barrier may not be geology or technology—but policy.
Meanwhile, other nations are revisiting decades-old datasets. The former Soviet Union’s geological archives, once obscure, are now central to identifying promising regions. Countries like France and Australia are also using historical geophysical data to refine exploration strategies, and Canada—long focused on helium exploration—is reevaluating its hydrogen potential through the same geoscientific lens.
Hydrogen rarely emerges alone. Its geological formation through radiolysis often accompanies helium release—an element critical to medical imaging, electronics manufacturing, and quantum computing. Canada already includes helium in its Critical Minerals Strategy, and the overlap with hydrogen offers both economic and strategic incentives for dual-resource exploration.
The dual focus could prove vital as exploration advances. If helium can be co-produced economically, it may help de-risk hydrogen ventures, especially in early-stage development phases where profitability is uncertain.
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