Global Search for Natural Hydrogen Gains Momentum as Companies Pursue Cost-Effective, Low-Carbon Energy Solutions.

The search for natural hydrogen, or “white or gold hydrogen”, is gaining global momentum as a potential gamechanger in the search for cost-effective, low-carbon energy sources. Rystad Energy research revealed that at the end of last year, 40 companies were searching for hydrogen deposits globally, up from just 10 in 2020. Currently, efforts are underway in Australia, the US, Spain, France, Albania, Colombia, South Korea and Canada. The cost of renewable hydrogen is expected to decrease as electrolyzer pricing decreases, but white hydrogen could still be cheaper due to its natural occurrence. The discovery of hydrogen underground is gaining momentum as companies seek to develop hydrogen projects. However, the size of the reserves is still unclear and challenges remain. The US Inflation Reduction Act allows companies to receive production tax credits (PTC) when the lifecycle carbon intensity is below 4 kg CO2e per kg H2.