Natural hydrogen detected in 'multiple locations' in South Australia

First stage of soil gas testing has yielded promising results for Australian firm Gold Hydrogen ahead of initial drilling in October

Soil-gas sampling techniques used in survey.
Soil-gas sampling techniques used in survey.Photo: Gold Hydrogen

ASX-listed company Gold Hydrogen has announced today (Tuesday) that naturally occurring hydrogen has been detected at the surface of “multiple locations” in PEL 687, an area in the state of South Australia which it has licensed for exploration.

Stay ahead on hydrogen with our free newsletter

Keep up with the latest developments in the international hydrogen industry with the free Accelerate Hydrogen newsletter. Sign up now for an unbiased, clear-sighted view of the fast-growing hydrogen sector.
Sign up now
Natural hydrogen, which can be formed in the earth’s subsurface through a variety of routes (see factbox below) is expected to be extremely cheap to recover, with estimated cost of production at a well in Mali below $0.50/kg.

Depending on additional transport and storage costs, it could be even cheaper than grey hydrogen made from unabated fossil gas, although the emissions footprint of exploration and drilling is yet to be determined.

But commercially exploitable reserves of natural hydrogen have yet to be discovered outside of Mali, where it is burned to generate electricity for a local village.

The stage-one survey was conducted by Australian government agency Commonwealth Scientific and Industrial Research Organisation (CSIRO) to test soil for so-called “white” or “gold” hydrogen across 80 different locations on Yorke Peninsula, which includes the PEL 687 area.

CSIRO has reported to Gold Hydrogen that its survey has measured levels of hydrogen which indicate the presence of natural H2 seeping up from undergound, with measured values noted as “moderate” at a few locations.

The survey also detected helium in multiple locations, which Gold Hydrogen says could be due to natural decay of geological elements in the crust.

Independent technical experts working for Gold Hydrogen suggested that this seepage of hydrogen along geological faults could imply that the gas has been generated in the subsurface, migrated upwards and filled a subsurface reservoir covered by a seal to prevent complete escape of the accumulated H2.
The company’s “best estimate” for hydrogen resource in PEL 687, calculated in September 2021, is 1.3 million tonnes of H2, although its low-case sits at around 207,000 tonnes. And it estimates a high case of 8.8 million tonnes of the zero-carbon gas in the block.

In 1931, naturally occurring hydrogen was found in three samples taken in the area during oil & gas exploration, at depths of 240.8 metres, 262.1 metres, and 507.8 metres.

The Australian firm plans to drill its first well to determine whether there is hydrogen accumulated underground in the licensed area this October.

A second-stage soil-gas survey, which would involve more long-term measurement, is also tentatively scheduled for late 2023 to early 2024.

(Copyright)
Published 25 July 2023, 09:25Updated 25 July 2023, 09:36