Oil & Gas

An Australian company has been granted permission to explore for natural hydrogen in the United States, capitalizing on the recent rush to develop this carbon-free resource, which would contribute to global energy transition goals. HyTerra, an Australian firm, announced that it received a permit to explore natural hydrogen in Kansas, with drilling scheduled to commence in the third quarter of 2024. Earlier, HyTerra raised $4 million to fund this campaign after discovering significant hydrogen quantities in neighboring Nebraska.

Natural hydrogen is released as gas in the Earth's aquifers and is typically extracted through drilling processes such as hydrocracking. This method involves injecting a mixture of water, sand, and chemicals at high pressure to release gas from rocks. HyTerra's plan includes drilling the Su Dorosh-3 well, located near a previous well that found gases with high hydrogen and helium content. Avon McIntyre, CEO of HyTerra, hailed the drilling permit as a momentous achievement and emphasized the potential of their diverse geological sites for future exploration.

HyTerra aims to produce natural hydrogen at a cost of less than $2 per kilogram, with a carbon density below 0.4 kilograms of CO2 equivalent per kilogram of hydrogen. This meets the minimum requirement for a tax credit for clean hydrogen production. The company holds rights to 9,600 acres for its Nimaha project, where it claims to have found over 10 natural hydrogen and helium hotspots. They estimate a high probability of significant recoverable hydrogen in this area, suggesting that the hydrogen supply could be renewable due to geological processes.

In another significant development, Gold Hydrogen, another Australian company, discovered natural hydrogen with high purity levels at its drilling sites in South Australia. The company reported an estimated 1.3 million tonnes of natural hydrogen in its project. This discovery, coupled with unexpectedly high permeability in underground formations, indicates continuous hydrogen and helium production. These advancements underscore the growing interest in natural hydrogen as a cost-effective and environmentally friendly energy source, distinguishing it from other forms like green and blue hydrogen.