An overview of natural hydrogen exploration activity worldwide

Exploration for natural hydrogen has begun in a number of countries across the globe. Depending on the nature of the jurisdiction, regulations are being adapted or repurposed for this new resource’s potential development, whether it be to utilize existing hydrocarbons legislation or the adoption of mining codes. In addition, with the advent of new low-carbon strategies, new options for permitting natural hydrogen are emerging in the form of being housed under green hydrogen statutes and policies. Formal exploration licenses can be obtained in around a dozen countries, and while uncertainties still exist concerning the nature of the geological generation, transport, and accumulation of hydrogen as a system, understanding has been increasing substantially year-on-year, with now over 100 companies involved in exploration. There has been a 50% increase in the number of research articles since 2020, with the total surpassing 350 by 2025. Commerciality is yet to be established for current projects, but the number of wellbores targeting natural hydrogen is steadily increasing, with around 30 wells planned in 2026, when about 12 have been drilled in 2025. The first exploratory drilling in Mali, Australia, the US, and Canada has shown hydrogen concentrations frequently over 80%, and assessment of potential in-place volumes is underway. However, the ecosystem is currently awaiting the first announcement of a commercially viable flow from a successful well test outside of Mali. To date, most funding of existing exploration players has come from climate venture and philanthropic funds, as well as some private placements. However, in the last year, we have seen the arrival of double-digit million-dollar investments from the largest oil & gas and, notably, mining companies, which could accelerate derisking and progress. Based on a typical development timeline of around a decade for natural resources, we could expect any production from any successful natural hydrogen project to come online sometime in early to mid-2030s.