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ISSN 2753-7757 (Online)

Searching for a new source of hydrogen – from the earth

14/5/2025

8 min read

Feature

Orange flames licking the base of a mountain at night time Photo: Adobe Stock/DarwelShots
 
Burning mountain near Baku, Azerbaijan, leaks naturally-occurring methane gas. Companies are now hoping to find, and tap into, similar reserves of natural hydrogen.

Photo: Adobe Stock/DarwelShots
 

The race to secure naturally occurring hydrogen assets, also known as ‘white’ hydrogen, appears to be now underway following a number of false starts. Nnamdi Anyadike reports on another potential resource in the rapidly evolving energy transition.

The search for white hydrogen has been likened by some to a modern-day gold rush. White hydrogen is formed through natural processes deep within the Earth’s crust. These include water-rock interactions, volcanic activity or the breakdown of organic matter by microorganisms. Unlike other types of hydrogen, white hydrogen produces only water when burned, making it a clean energy source. Because of this it is being explored as a potential low-carbon feedstock or fuel source.

 

The benefits of hydrogen have been known for years. However, its development has been plagued by two major challenges: the high cost of producing ‘green’ hydrogen – a form of hydrogen produced by the electrolysis of water using renewable electricity – and the pollution caused by ‘grey’ hydrogen, which is the most common type, produced from natural gas or methane using steam methane reformation.

 

In theory, white hydrogen has the lowest production cost of any type of hydrogen, with costs ranging between $0.5/kg for the Canada-based producer Hydroma and $1/kg for projects in Spain and Australia. This compares favourably to the average of less than $2/kg for grey hydrogen and the up to $6/kg for green hydrogen, according to Rystad Energy analysis.

 

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