Global Race to Unlock Hidden Hydrogen Reserves
Countries around the globe are racing to become the world’s first geologic hydrogen hotspot. A few years ago, the United States Department of Energy released a report estimating that trillions of metric tons of natural hydrogen deposits sit in underground pockets around the world, with a considerable amount potentially extractable for industrial use. Energy companies are now zeroing in on these pockets, which some see as potential goldmines.
China Breaks New Records
Just this week, a new study out of China reported scientists have measured record-breaking levels of hydrogen seepage in the Sichuan Basin. Samples from the area had hydrogen purity levels ranging between 97.33 percent and 98.24 percent, the highest ever recorded in the country. “This not only broke the record for natural hydrogen concentration in China but also became one of the few discoveries globally exceeding 98.00% purity,” the researchers reported.
The Philippines is also emerging as a focal point for this emerging energy sector. A billionaire-backed startup called Koloma believes the Southeast Asian nation could be ground zero for a geologic hydrogen revolution. The company’s CEO, Pete Johnson, recently told Forbes that the country has the largest natural hydrogen seeps anywhere on the planet and that they are connected to very large accumulations. [1]Such geological potential mirrors the excitement seen in other regions seeking to capitalize on this resource.
The Economic Case for Underground Hydrogen
The potential impact of commercially scalable geologic hydrogen operations is difficult to overstate. Recent modeling estimates that underground natural hydrogen reserves could total approximately 5.6 x 106 metric megatons. If the energy industry can extract just 2% of that total volume, it would yield twice the energy found in all proven global natural gas reserves, according to a report by Interesting Engineering.
This development would be transformative in several critical ways. It would alter the geopolitics of the global energy industry, granting newfound leverage to nations sitting atop these natural deposits. For a developing country like the Philippines, which has historically been a net energy importer with constrained cash flow, such a discovery stands to change everything. The arrival of a domestic, clean-burning fuel source could dramatically shift the economic trajectory for the entire region.
Geologic hydrogen could also supercharge the global decarbonization movement. Hydrogen has long been discussed as a potential solution for cleaning up hard-to-abate sectors like steelmaking and shipping. It can combust at high temperatures like coking coal or heavy fuel oil, but leaves behind nothing but water vapor when it burns. The problem is that most hydrogen is currently produced using fossil fuels, which negates its carbon footprint benefits. While green hydrogen has received significant funding, it remains pricey and inefficient. In many cases, it makes more sense to consume clean energy directly rather than convert it into hydrogen fuel.
This is where geologic hydrogen comes in. The approach could sidestep the issues that have left green hydrogen floundering by harvesting natural hydrogen directly from the Earth instead of using energy to produce it. The technology is still in its infancy, but experts believe it can be produced at scale and at a very low cost. The United States Department of Energy estimates geologic hydrogen could be produced for less than $1 per kilogram. This is a stunning figure when compared to current green hydrogen costs of approximately $3.50 to $6.00 per kilogram. If the DoE is right, geologic hydrogen would be cheaper than gray hydrogen made using fossil fuels, potentially disrupting the economics of the sizable global hydrogen sector. [2]Preventative measures and strategic planning will be essential to manage this shift.
