Australia’s natural hydrogen sector is moving from technical curiosity to early-stage investment theme, with South Australia emerging as one of the most closely watched jurisdictions for exploration activity.
The appeal lies in the possibility that hydrogen could be produced directly from underground reservoirs rather than manufactured through more energy-intensive processes. If commercially recoverable volumes can be confirmed, natural hydrogen could offer a lower-cost pathway into markets currently served by fossil-fuel-derived hydrogen, while also supporting emissions reduction across heavy industry, transport, fertiliser production and gas networks.
South Australia has become a focal point because several companies have secured exploration licences targeting underground source rocks believed to have potential for naturally occurring hydrogen. The state’s south-east, including the Otway Basin, is drawing particular attention, with a joint venture between Thor Energy and H2EX covering more than 4,000 square kilometres. The area has historical relevance because an oil well drilled near Robe in 1915 reportedly returned samples containing about 25% hydrogen.
Natural hydrogen offers a potential alternative that could fit into existing and future demand channels, including energy, trucking, transport and fertiliser production. There is also discussion around blending hydrogen into natural gas networks, potentially reducing emissions from existing gas use without requiring an immediate full replacement of infrastructure.
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.
