Investors have been talking about the huge potential of green hydrogen – hydrogen produced through electrolysis powered by renewable energy sources – for several years now. It is thought to be the clean fuel of the future, supporting the decarbonisation of hard-to-abate industries such as shipping, aviation, and manufacturing. However, recently, investor interest has been growing for an alternative energy source – white hydrogen.
Although green hydrogen is a great alternative to fossil fuels, as it can be used for a range of applications to help decarbonise heavy industry, it is still extremely expensive to produce compared to fossil fuels and hydrogen produced using natural gas. In contrast, geologic hydrogen, also known as white hydrogen, is naturally occurring and can be extracted from the ground. While hydrogen is the most abundant chemical element on Earth, it was thought until recently that the gas was not present in its pure form within the Earth. However, in 2012, oil and gas workers digging a borehole in Mali accidentally discovered almost pure natural hydrogen.
Since this discovery, geologists have been assessing deposits in different areas around the world. White hydrogen is produced from the reaction of water with iron-bearing rocks; the iron corrodes, and pure hydrogen bubbles are formed in the Earth’s crust. However, in contrast to fossil fuels, which take millions of years to produce, white hydrogen is constantly replenished. White hydrogen is thought to be more prevalent in unreachable offshore locations, although several deposits have been found since 2012 in Mali, Australia, eastern Europe, France, Oman, Spain, and the U.S.
A major discovery of white hydrogen in the Lorraine mining basin of France was announced earlier this year, offering greater optimism around the potential use of the natural, clean energy source. By 2023, France’s National Centre for Scientific Research had been conducting its Regalor Project for four years, aimed at extracting exploitable methane resources. However, upon drilling, researchers found natural hydrogen deposits in the region, which could be exploited to support the green transition. Based on the gas data at 1,100 metres below ground, where the researchers discovered a concentration of 14 percent hydrogen, the Lorraine deposit could contain up to 46 million tonnes of white hydrogen, which is equivalent to over half of the world’s current annual production of grey hydrogen.
In the U.S., Professor Iwnetim Abate at the Massachusetts Institute of Technology (MIT) is overseeing a group of researchers as they attempt to extract hydrogen from rocks. According to the U.S. Geological Survey, as well as being found in rocks, water within the Earth’s crust could contain billions of tonnes of geologic hydrogen. To determine the optimal conditions for hydrogen synthesis underground, supported by $3 million in funding from the U.S. Department of Energy, Abate’s team are exploring the potential conditions to make the process more efficient. They aim to halve the cost of the electrolysis of water or find an alternative better way.
In August, in Australia, the global metal mining company Fortescue acquired a 39.8 percent stake in the Australian hydrogen company HyTerra for $21.9 million. HyTerra and Fortescue will collaborate on the Nemaha project in Kansas and plan to explore new global opportunities. The cash injection is expected to help HyTerra expand operations to explore six wells instead of two.
Based on promising discoveries around the globe, several major investors are showing greater interest in white hydrogen. The U.S.-based clean fuel startup Koloma, which has backing from Bill Gates and Jeff Bezos, recently announced plans to use expertise in hydrocarbons to search for white hydrogen. The company has raised over $305 million since it was established a few years ago. Pete Johnson, the CEO and co-founder of Koloma, explained, “We can use expertise and service providers that have traditionally served the oil, gas, and mining industries and quickly put them to work in driving the discovery of carbon-free resources. Leveraging and modifying what already exists will allow us to mature the industry faster.”
There are several companies around the world now pursuing the “white gold rush” as governments and private investors grow increasingly interested in alternative energy sources. In addition to providing a promising source of clean fuel, white hydrogen could potentially be used to produce clean ammonia, which could shift reliance away from Russia for ammonia-based fertilisers. Transforming hydrogen gas into ammonia makes it significantly easier to transport. Energy companies can adapt existing natural gas pipelines to transport ammonia efficiently over long distances. The ammonia can either be used for fertilisers and other products or split back into hydrogen and nitrogen using the ammonia cracking process upon reaching its destination.
After an accidental discovery several years ago, momentum is finally beginning to pick up in the white hydrogen industry, as researchers look for alternative energy sources to support the global green transition. In addition, more investors are funding climate research and taking greater risks to finance innovative clean technologies and exploration activities. However, little is known about the natural production process of white hydrogen or how it might be extracted and used on a commercial scale, suggesting more exploration and assessment activities must be carried out to understand how to safely access the clean energy source.
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