H2EX, CSIRO to study “gold” hydrogen potential on Eyre Peninsula

Perth start-up H2EX is tapping into the CSIRO in the race to unearth the holy grail of cheap, clean, naturally occurring “gold” hydrogen in South Australia.

H2EX chairman Peter Coleman, left, with chief executive Mark Hanna. Picture: Supplied by H2EX

Perth exploration start-up H2EX is tapping into the research expertise of Australia's national science agency as it steps up its bid to unearth “gold” hydrogen in South Australia.

The company has entered into a research agreement with the CSIRO in the search for naturally occurring hydrogen, after recently securing its first exploration licence on the Eyre Peninsula.

H2EX said the CSIRO would undertake a “desktop study” of the licence area - covering close to 6000sq m of land - as a first step towards understanding the natural hydrogen system in the region.

Historical drilling records indicate that hydrogen at up to 85 per cent purity could be tapped in the region.

The potential for natural hydrogen in Australia was underlined in a research paper published by the CSIRO and Geoscience Australia last year, which documents accidental discoveries of hydrogen across the country.

Natural hydrogen deposits form through chemical reactions underground, with the most well-known process being the oxidation between water and iron sediments.

Unlike “green” or “blue” hydrogen, which use energy and capital-intensive processes to extract hydrogen from water or natural gas, natural or “gold” hydrogen needs little processing and is potentially far cheaper and more energy-efficient to produce.

After adapting its resources legislation last year, South Australia remains the only state or territory where there is a legislative framework allowing companies to explore for natural hydrogen.

H2EX is one of a handful of companies that have since sought permits across the state, and according to advisory firm EnergyQuest, almost a third of the state is now covered by exploration licences or licence applications.

H2EX is progressing applications covering 32,000sq km.

The company’s co-founder and chief executive Mark Hanna said the CSIRO study on the Eyre Peninsula would be the first of its kind in the region, with the outcomes of the research expected by the end of the year.

“We are one of the first companies in the world to explore for natural hydrogen,” he said.

“This is an important step in finding clean energy sources created by Mother Nature for Australian local communities and industry.”

Mr Hanna, a former Woodside Petroleum executive, established H2EX alongside partner Greschen Brecker who is also ex-Woodside.

Former Woodside chief executive Peter Coleman, who chairs the board and is a major financial backer of the company, said the CSIRO was at the “forefront of natural hydrogen research and field work”.

The gold hydrogen push in South Australia is being led by Brisbane-based Gold Hydrogen, which was the first Australian company to secure a hydrogen exploration licence.

The company, which is aiming to drill for hydrogen on South Australia’s Yorke Peninsula and Kangaroo Island, recently brought in former foreign minister Alexander Downer to chair its board.

South Australia is positioning itself as a major hydrogen hub, with the state government planning its own $593m hydrogen production, storage and energy facility at Whyalla in the Upper Spencer Gulf.

AGL is also assessing the viability of a hydrogen hub at its Torrens Island power station site near Port Adelaide, with heavyweights Brickworks, Adbri and INPEX also on board.

Naturally-occurring hydrogen is currently produced at just one site globally, in Mali.