Since the formation of the Earth billions of years ago, the ancient parts of the continental crust have continuously produced large quantities of natural hydrogen, some of which may have accumulated in accessible traps and reservoirs beneath the Earth's surface. This could contribute significantly to the global hydrogen economy over the coming centuries. A single gas field in Mali produces nearly pure hydrogen, attracting the attention of governments in the United States, Canada, Australia, the United Kingdom, and several European countries, as well as major venture capital firms and international resource companies. By the end of 2023, around 40 companies worldwide were exploring natural hydrogen, and the number may have doubled since 2024.

Hydrogen as a Resource: Immense Potential but Constrained by Regulation

Long before hydrogen was seen as a driver of the green energy transition, it was already a multi-billion-dollar market, with natural hydrogen accumulations known to exist in many regions. However, in many places, hydrogen has not previously been treated as a resource, and regulation has become a barrier to investment. Natural hydrogen can be used for fuel refining (about 44%), ammonia and fertilizer production (about 34%), steel manufacturing (about 5%), and other hard-to-decarbonize sectors. A UK government policy briefing notes that governments should classify hydrogen as a statutory natural resource, with future uses potentially including long-distance transport and decarbonization of the mining industry.

High Carbon Footprint: Natural Hydrogen Complements Green Hydrogen—Yet to Be Verified

Most hydrogen today is produced from fossil fuels, contributing about 2.5% of global carbon dioxide emissions. Producing low-carbon (green) hydrogen using renewable electricity and carbon capture and storage is expensive. The carbon footprint of natural hydrogen is comparable to—or even lower than—green hydrogen, and the two could complement each other, but estimates remain uncertain due to the lack of proven reserves for natural hydrogen. Strategic planning is needed to determine whether hydrogen is economically viable. Natural hydrogen requires exploration strategies and incentive measures incorporated into licensing.

Hydrogen and Helium: Significant Natural Hydrogen Reserves with Associated Helium

The U.S. Geological Survey estimates that natural hydrogen resources could meet global demand for about 200 years. Hydrogen is generated in the Earth's crust through two geological processes: reactions between groundwater and iron-rich minerals, and radiolytic decomposition of water. These processes also release helium, a valuable element in Canada's critical minerals strategy. Canada began searching for helium in the 1920s, and systematic studies of natural hydrogen began in Canada, Finland, and parts of Africa from the 1980s onward.

Renewed Interest: A Historical Coincidence Sparks Global Attention

The accidental discovery of a small natural hydrogen gas field in Mali, coinciding with the release of large amounts of historical data from the former Soviet Union, has triggered worldwide interest in hydrogen as a clean energy resource. Australia, France, and the United States were among the first countries to resume research into natural hydrogen. Natural hydrogen and helium systems resemble petroleum systems, and natural hydrogen wells use infrastructure similar to hydrocarbon wells, though completion and drilling methods differ. Natural hydrogen projects require small land areas, do not consume surface water, and offer clear advantages over green hydrogen facilities.

Future Policy: Clear Regulation Is Key

In some regions, there is a lack of policy specifically governing hydrogen exploration, while in others, existing mining or hydrocarbon regulations create constraints. In the United States, Canada, India, and parts of Africa and Europe, the absence of clear regulation is a barrier to hydrogen exploration, slowing decisions on exploration, land acquisition, and infrastructure development, and leading to insufficient community consultation. After South Australia introduced regulations for natural hydrogen exploration and capture, dozens of companies submitted exploration applications. The urgent demand for exploration requires policy and regulatory solutions. New projects will provide critical data to better understand the potential of natural hydrogen as a green energy resource.