Hydrogen has the potential to be an important low-emissions energy source helping to fuel the 21st century energy transition. “Geologic” hydrogen, extracted from the subsurface much like oil and gas, could become a key part of the story – but it’s early days. Let’s have a look.
Today hydrogen is primarily an industrial feedstock in sectors such as oil refining, ammonia, methanol, fertilizers, and steelmaking. Where hydrogen is used for energy – such as fueling a vehicle – it’s actually an energy vector, not an energy source. That’s because it’s manufactured using processes with big energy inputs, meaning energy is transformed from one state to another, not created.
Hydrogen is manufactured in three ways (Figure 1):
- Steam methane reformation – Natural gas (methane) is combined with steam to create hydrogen, carbon monoxide, and carbon dioxide. Net emissions are large and the product is called grey or black hydrogen. The process is cheap, and so generates more than 50% of global hydrogen supply. If carbon capture and storage (CCS) is added, costs are higher but net emissions are lower, and the product is called blue hydrogen. Alberta’s refining sector is a blue hydrogen leader.
- Electrolysis – Electricity is used to split water into hydrogen and oxygen. If low-emissions sources such as solar or wind create the electricity, overall emissions are low and the product is called green hydrogen. Green hydrogen is much more expensive to produce, however, and generally can’t compete in energy markets.
- Natural H2 – But if we could produce hydrogen from underground reservoirs, just as oil and natural gas are produced, it would be an energy source instead of just a vector – and emissions would be relatively low. The idea has gained traction in the past few years, and exploration companies around the world are now looking for so-called geologic (or natural) hydrogen.
Figure 1. Hydrogen sources and associated parameters. Black and blue hydrogen are manufactured using steam methane reformation, while green hydrogen is manufactured using electrolysis. Manufacturing costs vary widely, and can be significantly higher where inputs are more expensive. Geologic (natural) hydrogen production carbon footprints and costs are speculative, and have not yet been established for commercial production. Source
Hydrogen has been found in the subsurface but not in the same places as natural gas, as each is generated in a different setting. Oil and gas form in sedimentary rocks as heat and pressure transform organic material over time, whereas hydrogen is generated by chemical reactions between hot water and iron-rich igneous rocks. We know of only one geologic hydrogen field in the world; in the west African nation of Mali, relatively pure hydrogen was discovered by accident while drilling for water. Flow rates are small, sufficient only to provide some power to a village – but it’s an encouraging show.
There’s now a lot of geologic hydrogen research underway, and the United States Geological Survey (USGS) recently published an assessment of relative hydrogen prospectivity in the lower forty-eight states (Figure 2).
Figure 2. Relative prospectivity for geologic hydrogen in the lower 48 states estimated by the United States Geological Survey based on statistical analysis of source, reservoir and seal parameters. Higher values show conditions more favourable for hydrogen discoveries, but the interpretations have not been validated by commercial discoveries. Source
They suggest that geologic hydrogen may be found in three play types (Figure 3):
- Accumulating in porous and permeable reservoirs, just like oil, gas, and helium.
- From naturally-fractured igneous rocks that are actively generating hydrogen.
- From igneous rocks with hydrogen-generating chemistry that are drilled and artificially fractured to create permeability fairways for gas production (the same process as hydraulic fracturing for natural gas).
Figure 3. Three play types for geologic hydrogen – accumulations in conventional reservoirs that can also host oil, gas, water and helium; naturally-fractured rock bodies generating hydrogen continuously through interaction with subsurface waters; and hydrogen-prone source rocks that could produce with drilling, hydraulic fracturing and introduction of water to sustain hydrogen-generating reactions. Source
More than one hundred companies are pursuing these three play types around the world. Hydrogen has been detected in a number of places, but commercial success will require a lot more work. That’s no surprise because the commerciality bar is high. Hydrogen for energy must compete on price and availability with other energy sources, particularly natural gas – meaning that successful explorers must drill wells that can access billions of cubic metres of hydrogen reserves and produce them at rates approaching millions of cubic metres per day.
HYDROGEN EXPLORATION IN CANADA
Canada is a powerful place to explore for hydrogen. We have:
- Strong oil and gas and mining sectors supporting exploration mindsets and technologies
- Abundant and publicly available technical data
- Favourable regulatory regimes supporting extractive resource industries
- Significant hydrogen resource potential in all three play types across the country
Saskatchewan recently bundled hydrogen exploration and production rights with helium and other exotic gases separately from petroleum and natural gas rights, allowing junior start-up companies to compete more effectively for hydrogen resource access. Federal and other provincial governments have published hydrogen policy strategies and roadmaps, but these focus on hydrogen manufacturing, transportation, and consumption, not geologic hydrogen prospecting or subsurface rights. Specific geologic hydrogen regulations await greater industry activity and delineation of prospects and drilling plans.
Let’s have a quick look at two Canadian companies with different exploration strategies.
MAX Power is driven by a team of professionals with extensive oil and gas experience. Using exploratory well data, seismic surveys, and intensive mapping, they have delineated a 475 km long regional exploration fairway (the Genesis Trend) in Saskatchewan’s Williston Basin (Figure 4). MAX Power follows a hydrogen system approach, characterizing hydrogen source rocks, reservoirs, traps, and seals – a process similar to regional petroleum exploration. Genesis contains numerous individual hydrogen prospects, and MAX Power’s first exploration well at the Lawson prospect confirmed a working hydrogen system – an encouraging step in the road to commercial production. Helium has been discovered in the same reservoirs, and co-production could offer attractive economics.
Figure 4. MAX Power’s Genesis exploration fairway in Saskatchewan, illustrating hydrogen prospects identified through mapping of basement rock types and the regional high-quality seal provided by the pervasive Prairie Evaporite salt formation. Exploration drilling at the Lawson Prospect has yielded encouraging signs of hydrogen. Source
Element One Hydrogen and Critical Minerals focuses on ultramafic (iron-rich) igneous hydrogen source rocks, looking to combine fracturing to stimulate hydrogen generation with extraction of critical minerals such as nickel, cobalt, and platinum group metals. Element One is investigating several properties in British Columbia and Alaska. Primary Hydrogen follows a similar strategy, while Quebec Innovative Materials is more focused on producing from naturally-fractured hard-rock hydrogen reservoirs.
THE FUTURE FOR GEOLOGIC HYDROGEN
Will geologic hydrogen become an important energy source, displacing higher-emissions fuels such as natural gas, oil, and coal? There are some innovative ideas and important work happening, particularly in Canada – but all face significant challenges in establishing flow rates and reserves sufficient to support commercial production. Governments and energy regulators can assist by developing specific regulations and incentives encouraging geologic hydrogen.
Let’s watch carefully as ideas and results unfold.
