Sami Alisawi, a geologic hydrogen expert from BNEF, and Musfika Mishi, a tech and innovation specialist at BNEF, explore the fascinating potential of gold hydrogen—an accessible, eco-friendly alternative to conventional hydrogen. They discuss its economic viability, highlighting successful case studies like a significant hydrogen find in Mali. The duo also addresses the technological hurdles in extraction and transportation, and the intriguing synergies with helium extraction that could shape the future of the hydrogen market.
Gold hydrogen offers a promising alternative to synthetic methods due to its lower carbon intensity and potential cost advantages.
Significant technical and economic challenges remain in the extraction and viability of gold hydrogen, impacting its role in a clean energy transition.
Deep dives
Overview of Gold Hydrogen
Gold hydrogen, also known as geologic hydrogen, is defined as naturally occurring hydrogen found underground. Unlike synthetic hydrogen production methods, gold hydrogen possesses lower carbon intensity and cost potential. Various hypotheses exist regarding its formation, including radiolysis, serpentinization, and mantle degassing, but the dominant mechanism remains uncertain. Despite its theoretical promise, successful extraction examples are limited, creating significant technical and economic challenges for the industry.
Technical Barriers to Extraction
Extracting geological hydrogen is theoretically similar to oil and gas extraction, utilizing drilled wells to access hydrogen reservoirs. Researchers are currently studying three main types of hydrogen accumulation: trapped reservoirs, direct extraction from iron-rich rocks, and stimulated hydrogen production through artificial methods. Technical barriers include difficulties in discovering hydrogen traps and the need for extensive geological assessments. The logistics of extraction and subsequent gas processing further complicate the economic viability of gold hydrogen projects.
Economic Viability and Market Potential
The economic landscape for gold hydrogen is still forming, with developers targeting production costs as low as one dollar per kilogram. The capital costs of geological hydrogen projects are high, often ranging from hundreds of millions to a billion dollars, depending on various site-specific factors. While current hydrogen production costs vary widely—with gray hydrogen around one to three dollars per kilogram—gold hydrogen has the potential to be competitively priced with appropriate advancements and subsidies. Revenue projections are optimistic, especially if demand for hydrogen continues to rise alongside engineering breakthroughs.
Environmental Impact and Clean Energy Transition
Lifecycle analysis suggests that gold hydrogen can be cleaner than various other hydrogen types, emitting significantly lower CO2 levels per kilogram produced. While the process does involve some fugitive emissions, ongoing studies indicate that gold hydrogen may represent a cleaner alternative in the hydrogen production landscape. However, concerns regarding methane leakage during extraction persist, which could impact its overall environmental benefits. The role of geological hydrogen as a bridge fuel in the transition to a clean economy remains debated, highlighting the need for rigorous scientific evaluation.
At first glance, gold hydrogen could be a game changer. This naturally occurring molecule, which is found in reservoirs below the Earth’s surface, has the potential to be less carbon intensive and less expensive than man-made hydrogen. But all that glitters is not necessarily gold, and a myriad of factors, from possible synergies with helium extraction to ongoing technical challenges, could still tip the scales either toward or away from gold hydrogen’s economic viability. On today’s show, Dana Perkins is joined by Sami Alisawi from BNEF’s Hydrogen team and Musfika Mishi from BNEF’s Technology and Innovation team to discuss findings from their recent report “Technology Radar: Geologic Hydrogen”.
Complementary BNEF research on the trends driving the transition to a lower-carbon economy can be found at BNEF<GO> on the Bloomberg Terminal or on bnef.com