Gold Hydrogen raises funds for geological hydrogen

The Australian geological hydrogen start-up Gold Hydrogen has raised $14.5 million, split about evenly among the Japanese firms Toyota Motor, Mitsubishi Gas Chemical, and Eneos Xplora. Gold Hydrogen is exploring several drilling sites in Australia’s Yorke Peninsula. It says analytical results so far suggest that the geological system in the area is rich with both hydrogen and helium, including the rare isotope ³He.

Geological hydrogen, also referred to as natural hydrogen, forms in deep underground formations from the reaction of water with rocks rich in iron(II). Radioactive decay at similar depths of heavy elements such as thorium and uranium releases both helium and ionizing radiation, the latter of which can split water into hydrogen and oxygen. In recent years, the geological hydrogen concept has transformed from an academic curiosity to a possibly huge clean-energy opportunity.

In a press release, Gold Hydrogen says the three investors will help develop the regional market for low-carbon hydrogen. The firms are targeting use of hydrogen in transportation, power-grid fuel cells, and as a feedstock for low-carbon chemicals and liquid fuels.

“It’s good news for the natural hydrogen space, and I am genuinely rooting for them,” says Bo Sears, CEO of Helix Exploration, a geological hydrogen and helium company focused on western North America. Sears says large multinational companies have so far been reluctant to invest in geological hydrogen and helium, so the involvement of Toyota, Mitsubishi Gas Chemical, and Eneos is notable. Gold Hydrogen’s previous investors are mostly family offices and other small funds.

“Investment in natural hydrogen, I believe, will remain slow for the time being,” Sears says. “It’s so off the beaten path.” But once exploration projects start turning into productive gas flows, he expects large institutions to rush in. “One discovery changes the entire landscape,” he says.