Emerging opportunities and technical challenges in geological hydrogen present both promise and complexity for young professionals entering the energy transition.
The energy industry is witnessing unprecedented interest in natural hydrogen, a geological phenomenon that could reshape our understanding of clean energy resources. As global hydrogen demand is projected to increase from 90 million tonnes in 2022 to 540 million tonnes by 2050, the search for sustainable, low-carbon hydrogen sources has intensified.
To understand where natural hydrogen fits in the wider hydrogen ecosystem, it is essential to first examine the various hydrogen production methods and their environmental implications.
The hydrogen industry has developed a comprehensive color-coding system to distinguish between different production pathways, each with distinct characteristics and implications for the energy transition.
As illustrated in Table 1, this classification system spans from high-emission fossil fuel-based production (brown and black hydrogen) to zero-emission renewable and geological sources (green and white/gold hydrogen). Natural hydrogen, represented by the distinctive white/gold designation, occupies a unique position in this classification as the only hydrogen source that requires no industrial production process. It is created naturally by geological processes deep within the Earth’s crust.
Recent research indicates that the translation of the geological potential in natural hydrogen into whether the resource can be commercially developed remains uncertain. The number of companies actively seeking natural hydrogen deposits has increased from just 10 in 2020 to 40 by the end of 2023 (Rystad Energy, 2024), yet only one location worldwide, the village of Bourakébougou in Mali, currently produces natural hydrogen for commercial use.
Understanding Natural Hydrogen Systems: The Science Behind the Opportunity
Natural hydrogen formation occurs through several geological processes, with serpentinization being the most significant mechanism. This process involves water reacting with iron-rich minerals in ultramafic rocks to produce hydrogen gas, occurring in settings from mid-oceanic ridges to continental ophiolite complexes and cratonic regions (Prinzhofer & Cacas-Stentz, 2023). Additionally, thermogenic processes in sedimentary basins can generate hydrogen through thermal decomposition of organic matter at temperatures between 250 and 500°C (Sequeira et al., 2025).
From an environmental standpoint, natural hydrogen differs from other types due to its classification as the only source that does not require industrial production. Unlike gray hydrogen in which up to 10 tons of CO₂ are emitted compared to 3 tons of CO₂ emitted when a ton of gasoline is used, or even blue hydrogen, which still relies on fossil fuel feedstocks despite carbon capture technology—natural hydrogen offers minimal environmental impact at the point of extraction. The geological processes that create natural hydrogen have already occurred over millions of years, meaning that extraction requires minimal energy input compared to electrolysis-based green hydrogen production, which demands approximately 50 kWh of electricity per kg of hydrogen.
Current exploration efforts have identified three broad play types for natural hydrogen accumulation.
- Focused seepage plays involve predominantly aqueous hydrogen migration with minimal trapping, typically resulting in low resource density and challenging production economics.
- Coalbed plays feature hydrogen adsorbed molecularly in coal formations, potentially offering higher resource density but with significant technical challenges related to desorption and production rates.
- Reservoir-trap-seal plays, analogous to conventional gas fields, offer the greatest potential for industrial-scale development but remain largely unproven, with no unambiguous discoveries of this type reported to date.
Global Exploration Activity and Regulatory Landscape
Current natural hydrogen exploration activity spans multiple continents and geological settings, providing insights into the global potential for this resource and the diverse approaches being taken by exploration companies. In North America, exploration programs are active in both the US and Canada, with projects targeting different geological settings. Canadian exploration efforts include partnerships between industry and academic institutions to explore the potential for geological hydrogen in ophiolite complexes (First Atlantic Nickel, 2025).
Australian exploration activity is worth highlighting, with dedicated exploration licenses granted in South Australia and active programs in Western Australia. European exploration efforts include documented natural hydrogen occurrences in the French Pyrenees. The UK, despite having promising geological formations in Scotland and Cornwall, has not conducted a comprehensive national assessment of natural hydrogen potential, representing a significant opportunity for future exploration and research efforts.
The regulatory environment for natural hydrogen exploration varies significantly between jurisdictions. Some countries are beginning to develop specific licensing and permitting frameworks while others rely on existing mining or petroleum regulations. This regulatory uncertainty creates both challenges and opportunities for exploration companies and highlights the need for policy development to support responsible exploration and development of natural hydrogen resources.
Technical Challenges and Development Hurdles
Developing natural hydrogen brings technical challenges on multiple fronts and requires innovative solutions beyond conventional oil and gas approaches. One of the most significant challenges is accurate detection and quantification of hydrogen resources. Unlike conventional hydrocarbons, hydrogen’s high reactivity and small molecular size make it prone to alteration and loss during migration and storage (Everts et al., 2025).
Seismic exploration is both promising and problematic when applied to natural hydrogen. The seismic method provides tools for imaging reservoirs, seals, faults, and structural traps, with many methodologies developed in conventional oil and gas exploration being applicable to hydrogen systems (Zhang and Li, 2024). However, effectiveness depends heavily on reservoir quality and depth, with poor reservoir quality potentially masking hydrogen presence even when it exists in the subsurface.
Production testing represents another critical challenge. Unlike conventional gas fields, natural hydrogen systems require specialized approaches to prove the presence of free gas rather than dissolved hydrogen in formation water. This distinction is crucial for resource classification under industry standards such as SPE’s Petroleum Resource Management System. Current natural hydrogen discoveries often contain significant proportions of other gases, with hydrogen concentrations varying dramatically, creating substantial purification challenges.
Recent exploration activity spans multiple continents. In Kansas, HyTerra’s Nemaha Project has confirmed hydrogen presence through multiple wells, with historic wells showing more than 10 hydrogen and helium occurrences within the region, some up to 92% hydrogen and 3% helium. In Western Australia, Constellation Resources’ Edmund-Collier Project has confirmed thermogenic hydrogen potential, with exceptionally high total organic carbon values in shale formations and thermal maturity results confirming conditions suitable for thermogenic hydrogen generation (Mathur et al., 2025). These findings represent some of the most promising results for thermogenic hydrogen systems reported to date.
Economic Positioning in the Hydrogen Market
The potential economic viability of natural hydrogen is a key advantage within the hydrogen classification system. As shown in Table 1, natural hydrogen is projected to achieve production costs competitive with conventional hydrogen production methods while offering minimal environmental impact. This cost advantage stems from the fundamental difference in production approach, while other hydrogen types require energy-intensive industrial processes, natural hydrogen extraction leverages geological processes that have already occurred, requiring only extraction and minimal processing at the surface.
Current production data from limited natural hydrogen occurrences provide insights into potential production rates, though these examples may not be representative of future commercial developments. Geothermal wells in Iceland produce approximately 8 kg of hydrogen per day per well, while a small area of exposed ultramafic rock produces around 550 kg per day through fracture networks. Commercial hydrogen applications typically require supply commitments of at least 1,000 tonnes per year, with larger industrial applications requiring much higher volumes (Everts et al., 2025).
Natural hydrogen exhibits efficient characteristics that are especially favorable compared to other methods in the classification system. Unlike electrolysis, which typically achieves 60 to 70% efficiency due to electrolyzer losses (Goodall, 2021), or steam methane reforming, which achieves approximately 70% efficiency, natural hydrogen extraction requires minimal conversion processes, potentially achieving very high overall efficiency. This efficiency advantage, combined with the absence of CO₂ emissions during production, positions natural hydrogen as a potentially transformative technology for the hydrogen economy.
Research Opportunities
As a developing field, natural hydrogen exploration creates opportunities for early-career professionals to contribute to a promising area of energy research. The interdisciplinary nature of natural hydrogen research requires expertise spanning geology, geochemistry, reservoir engineering, and environmental science, creating opportunities for professionals with diverse technical backgrounds to help advance this promising segment of the hydrogen classification system.
Fundamental research is needed to better understand hydrogen generation mechanisms, particularly the kinetics and efficiency of serpentinization reactions under different geological conditions. This research directly informs resource assessment and exploration strategies, as identifying the controls on hydrogen generation rates and volumes is key to predicting potential commercial accumulations. Recent work by Oxford University researchers has identified the key “ingredients” required for successful natural hydrogen accumulation, including hydrogen generation sources, migration pathways, reservoir rocks, sealing mechanisms, and preservation conditions (Ballentine et al., 2025).
Migration and accumulation studies represent another critical research area. The behavior of hydrogen during migration differs significantly from conventional hydrocarbons due to its unique physical and chemical properties. Research into hydrogen migration pathways, trapping mechanisms, and preservation conditions could provide the foundation for more effective exploration strategies. Understanding how to avoid environments where underground microbes consume hydrogen is particularly important for preserving hydrogen in economic accumulations.
The development of specialized exploration technologies presents opportunities for professionals with backgrounds in geophysics and engineering. Current exploration approaches largely rely on adapted conventional methods, but the unique properties of hydrogen may require novel detection and characterization techniques, including advanced geochemical sampling methods and specialized seismic processing techniques (Zhang & Li, 2024).
Environmental and sustainability research represents another important opportunity area. Research into the environmental impacts of natural hydrogen exploration and production, including potential effects on groundwater systems and surface ecosystems, will be essential for responsible development of this resource. Life-cycle assessments comparing natural hydrogen to other hydrogen production methods could provide important insights for policy development and investment decisions.
Future Outlook: Positioning Natural Hydrogen in the Clean Energy Transition
Natural hydrogen represents a potentially significant opportunity in the global transition to clean energy, occupying a unique and advantageous position in the hydrogen classification system. Unlike other hydrogen production methods that require substantial industrial infrastructure and energy inputs, natural hydrogen offers the possibility of accessing a clean energy resource that has been naturally produced by geological processes over vast time scales.
As recent research emphasizes, “This is not a gold rush. As interest grows, we need to make sure evidence stays at the center of the conversation. We need solid science, good data, and a realistic view of what’s possible to make sure the hype doesn’t run away with itself.” The coming years will be critical for determining whether natural hydrogen can transition from scientific curiosity to commercial reality, requiring not only technical advances but also realistic assessment of challenges and limitations.
For young professionals entering the energy industry, natural hydrogen exploration offers unique opportunities to contribute to a potentially transformative technology while developing expertise in an emerging field. The current early stage of commercial development means that innovative thinking and novel approaches are particularly valuable, creating an environment where young professionals can have a significant impact on advancing this promising segment of the hydrogen classification system.
The success of natural hydrogen as a commercial energy resource will ultimately depend on the discovery and development of high-quality accumulations that can support sustained production at commercial scales. This will require continued investment in exploration and research, development of specialized technologies, and creation of appropriate regulatory frameworks. The potential for natural hydrogen to achieve the cost and environmental advantages suggested by its position in the hydrogen classification system makes it a compelling target for continued research and development efforts.
The integration of natural hydrogen into the broader hydrogen economy will depend not only on successful exploration and development but also on its ability to compete economically with other hydrogen production methods. The combination of potentially low production costs, minimal environmental impact, and high process efficiency positions natural hydrogen as a potentially transformative addition to the clean energy toolkit. By maintaining focus on rigorous science and practical solutions, the natural hydrogen industry can work toward realizing the significant potential that this unique position in the hydrogen classification system represents.
For Further Reading
Natural Hydrogen Resource Accumulation in the Continental Crust by C. Ballentine, R. Karolytė, A. Cheng, University of Oxford, et al.
Natural Hydrogen Development-Potential and Challenges by A. Everts, AEGeo Sdn Bhd, J. Bonnie, Jos Bonnie Petrophysics Advice & Assurance Services, R. Loosveld, Loosveld Exploration Consultancy.
First Atlantic Nickel and Colorado School of Mines Launch Research Partnership To Explore Geologic Hydrogen Potential in Newfoundland Ophiolites
Some Rules of Thumb of the Hydrogen Economy by C. Goodall, Carbon Commentary
Global Hydrogen Review 2024, IEA
Techno-Economic Analysis of Natural and Stimulated Geological Hydrogen by Y. Mathur, H. Moise, Y. Aydin, Stanford University, et al.
Hydrogen Production, Storage, Utilization, and Environmental Impacts: A Review by A. Osman, N. Mehta, Queen’s University Belfast; A. Elgarahy, Port Said University, et al.
Orange Hydrogen is the New Green by F. Osselin, C. Soulaine, C. Fauguerolles, Université d’Orléans, et al.
Natural Hydrogen and Blend Gas: A Dynamic Model of Accumulation by A. Prinzhofer and M. Cacas-Stentz.
Natural hydrogen Could be Part of a Green Future, But Needs Scientific Rigor To Balance Hype
The White Gold Rush and the Pursuit of Natural Hydrogen, Rystad Energy
Natural Hydrogen in Uruguay: Catalog of H2-Generating Rocks, Prospective Exploration Areas, and Potential Systems by M. Sequeira, PEDECIBA, E. Morales, Universidad de la República, I. Moretti, PPA Rue de l’Université, et al.
The Role of Geophysics in Geologic Hydrogen Resources by M. Zhang, Y. Li, Colorado School of Mines
Aimen Laalam is a PhD candidate in petroleum engineering at the Colorado School of Mines and serves as a graduate teaching assistant, where his work focuses on natural hydrogen systems and innovative subsurface hydrogen storage solutions. Building on his master’s research at the University of North Dakota (UND), an in-depth geomechanical study of underground hydrogen storage in saline aquifers like the Inyan Kara formation in the Williston Basin—he continues to advance in the field of geological hydrogen at Mines. Laalam has published extensively on topics ranging from CFD-led drilling optimization and fishbone well design to reservoir analytics and repurposing old wells for clean-energy applications. He’s also an active peer reviewer for prestigious journals such as the International Journal of Hydrogen Energy, Petroleum Science and Engineering, and SPE Journal. From 2024 to 2025, he served as president of the SPE Colorado School of Mines Student Chapter, leading initiatives to foster student engagement, industry networking, and research competitions. Passionate about bridging subsurface petroleum engineering with the hydrogen energy transition, his work leverages advanced modeling, machine learning, and deep geological insight to drive sustainable innovation in the energy landscape.
He holds BS and MS degrees in petroleum production engineering and an MEng in petroleum engineering from the University of North Dakota.
Parisa Bazazi is an assistant professor at the Colorado School of Mines Department of Petroleum Engineering. Her research focuses on advancing enhanced oil recovery (EOR) through interfacial science, fluid mechanics, and the design of next-generation functional materials. Bazazi leads a multidisciplinary research group developing novel fluids, including nanoparticle- and nanobubble-based systems, to enhance oil displacement efficiency and reduce environmental impact. Her work also spans hydrogen storage, geothermal energy extraction, and bioenergy, connecting subsurface energy recovery with broader goals of energy security and sustainability. She has received several academic awards, including the 2025 SPE Rocky Mountain Regional Faculty Award, the Eyes High Doctoral Scholarship, and the Transformative Talent Internship Program Award. Her research has been published in journals such as Nature Communications and Physical Review Letters. She teaches undergraduate and graduate courses in fluid mechanics, rock properties, and thermodynamics, while actively mentoring students and contributing to professional service through SPE.
She holds MSc and PhD degrees in chemical and petroleum engineering from the University of Calgary and completed her postdoctoral research at Princeton University before joining Mines in 2023.
