White hydrogen – a new gold mine sparks a global hunt

Buzz around natural hydrogen – dubbed white or yellow hydrogen – is making waves globally as a potential game changer in the hunt for cost-effective, low-carbon energy sources , according to Oil Price.

Illustration

Recent research by Rystad Energy found that at the end of last year, there were 40 companies searching for natural hydrogen reserves, up from just 10 in 2020. Currently, exploration efforts are underway in Australia, USA, Spain, France, Albania, Colombia, South Korea and Canada.

One of the most promising elements of white hydrogen is its cost advantage over other forms of hydrogen due to its naturally occurring nature. Gray hydrogen, produced from fossil fuels, costs less than $2 per kilogram (kg) of hydrogen on average, while green hydrogen , produced using renewable electricity, is currently three times more expensive. The cost of renewable hydrogen is expected to decrease as electrolyzer prices fall in the coming years, however, white hydrogen will still be cheaper.

Currently, Canada-based company Hydroma extracts white hydrogen at an estimated cost of $0.50/kg. Depending on mine depth and purity, projects in Spain and Australia aim for costs around $1/kg, reinforcing the price competitiveness of white hydrogen.

Hydroma's hydrogen drilling operations in Mali. (Source: Hydroma).

In addition to cost advantages, white hydrogen can also have low carbon intensity. With a hydrogen content of 85% and minimal methane pollution, the carbon intensity is approximately 0.4 kg carbon dioxide equivalent (CO2e) per kg hydrogen (H2) – including existing emissions and hydrogen emissions. At 75% hydrogen and 22% methane, the intensity increases to 1.5 kg CO2e/kg H2.

Potential

Although still in its infancy with many uncertainties, white hydrogen has the potential to be a game changer for the clean hydrogen sector as a clean, affordable natural resource, from That shifts hydrogen's role from an energy carrier to part of the primary energy supply. However, the actual scale of the reserves remains unclear and hydrogen transportation and distribution challenges remain, according to Minh Khoi Le, head of hydrogen research at Rystad Energy.

The green hydrogen plant was built by the Spanish company Iberdrola in Puertollano. (Source: AP).

Through the US Disinflation Act, companies are eligible to receive a production tax credit (PTC) when their life-cycle carbon intensity is below 4 kg CO2e/kg H2. The highest rate from the PTC is $3/kg if the hydrogen extraction meets the carbon intensity threshold of 0.45 kg CO2e/kg H2.

Therefore, mining low-carbon white hydrogen in the US could qualify for the highest PTC, making it attractive to operators.

Illustration.

Despite the first accidental discovery about 37 years ago in Mali, underground hydrogen accumulation was previously thought to be unlikely due to hydrogen's ability to seep through rock layers. However, new devices, such as sensor hydrogen detectors, are now available to detect dissolved hydrogen in rock formations at depths of up to 1,500 meters.

These probes use spectrometers to measure and analyze dissolved gases in deep boreholes. Researchers are currently developing probes that can reach deeper depths, up to 3,000 meters underground.

Hydrogen is used as fuel for vehicles.

Future needs

In a live chat with France24, Minh Khoi Le revealed that hydrogen demand to meet some net zero emissions commitments will be 250 million tons to 450 million tons, four times the amount of hydrogen used today. . So, opportunities still exist for many types of hydrogen.

Currently, there is not much proven data about natural hydrogen reserves, however, a few numbers have shown the importance of this energy source.

RWE's electrolysis plant in Lingen, Germany. (Source: RWE).

The process of forming white hydrogen

White hydrogen is mainly produced through natural reactions, such as Serpentinization, in which water reacts with iron-rich minerals at high temperatures. Enhancing Serpentinization using catalysts such as magnetite can help accelerate natural hydrogen production reactions.

The radioactivity of water is another natural source of hydrogen. This process involves radioactive elements in the Earth's crust shedding water due to ionizing radiation.

The South Australian Government added hydrogen to its list of regulated substances in 2021. This resulted in multiple companies applying for exploration licenses in the region, with Gold Hydrogen receiving 5 licenses. years to develop his Ramsay project. The company found hydrogen concentrations as high as 86% during drilling in late 2023. Gold Hydrogen plans to conduct additional drilling in 2024 and launch a pilot feasibility study.

Natural Hydrogen Energy's white hydrogen drilling operations in the US Midwest. (Source: CNN).

Governments in countries such as France and the US have promised financial support to accelerate the exploration and exploitation of natural hydrogen projects. Currently, there is only one white hydrogen project in operation in Bourakebougou, Mali, producing about 5 tons of hydrogen per year. This small-scale project has been operating for a decade, providing electricity to a village. Other projects in many parts of the world are still in the early exploration stages, with the first natural hydrogen production in Europe expected to begin in 2029.