Tucked away in the Earth’s crust lies a virtually untapped energy source that could transform the global clean energy market. As the race toward net zero accelerates, naturally occurring ‘gold hydrogen’ is emerging from the shadows with staggering potential. With the prospect of fuelling entire industries without the emissions burden of traditional hydrogen production, this clean, natural gas is turning heads in boardrooms and on trading floors alike.
Hydrogen is widely seen as a cornerstone for a net zero future, especially in sectors where emissions reductions are notoriously difficult—such as steelmaking, cement production, long-haul transport, and power generation. Today, the lion’s share of hydrogen is derived from fossil fuels, particularly natural gas. This is where ‘blue’ and ‘green’ hydrogen have stepped into the spotlight. Blue hydrogen attempts to reduce its footprint by capturing and storing the carbon emissions produced during reforming, while green hydrogen uses electricity from renewable sources to split water molecules, producing hydrogen and oxygen with minimal emissions.
But a new contender has entered the frame, promising to shake up the market: natural hydrogen. Also called ‘gold hydrogen’, or ‘white’ hydrogen, this naturally occurring gas forms deep underground when iron-rich rocks react with water. For decades, this phenomenon was considered rare, with little commercial significance. That view has changed dramatically in recent years.
A quiet hydrogen revolution began in Mali, where a well drilled in 2012 has been consistently producing nearly pure natural hydrogen. Since then, geological surveys have uncovered potential deposits around the world, including in France, Spain, Brazil, the United States and parts of Africa. The realisation that hydrogen is continually generated by natural geological processes has transformed its image from a geological curiosity to a viable commercial resource.
According to the International Energy Agency, the world will need 430 million tonnes of hydrogen annually by 2050 to meet net zero targets. Geologists now estimate that global reserves of natural hydrogen could reach a mind-boggling five trillion tonnes. Even accessing a minuscule share of these reserves could supply clean energy for centuries, bridging the impending gap between soaring demand and constrained supply.
What makes natural hydrogen so compelling from an investment standpoint is its simplicity. Unlike synthetic hydrogen, which requires energy-intensive manufacturing processes, natural hydrogen only needs to be extracted and purified. It bypasses the emissions and cost hurdles of reforming natural gas or powering vast arrays of electrolytic cells. The low-cost, low-emission profile positions natural hydrogen as a game-changer for scaling clean energy in hard-to-abate industries.
Drilling for hydrogen is similar to the well-established practices used in natural gas and oil extraction, making the transition relatively seamless for experienced energy companies. However, regulatory frameworks remain in their infancy. Few countries have clear legislation governing the exploration and exploitation of natural hydrogen, although growing interest is likely to prompt swift policy evolution.
Environmental concerns remain part of the conversation, particularly regarding land use and water table disruption. Still, proponents argue that the minimal processing required gives natural hydrogen a significantly lighter environmental footprint compared to traditional methods.
Investors now find themselves at the threshold of what could become a new global resource rush—akin to the 19th-century gold fever, only this time, it’s about fuelling the clean energy transition. With exploration ramping up and reserves being uncovered across continents, early movers in natural hydrogen could be positioning themselves for extraordinary returns as the world scrambles to meet climate commitments.
Natural hydrogen, also known as gold or white hydrogen, is a clean, naturally occurring gas formed underground when iron-rich rock reacts with water. Easily extractable and requiring minimal processing, it offers a cost-effective, low-emission alternative to traditional hydrogen production and could play a vital role in achieving net zero goals.
Thor Energy PLC (LON:THR) is a leading exploration company focused on natural hydrogen and helium, with a significant footprint in the highly prospective South Australian region.
