Natural Hydrogen Development-Potential and Challenges

This paper investigates the technical development potential of natural hydrogen by estimating, for some recent finds and identified prospects, in-place and recoverable hydrogen, well productivity, water production and other byproducts that a future development would have to cater for. Indicative Unit Technical Cost (UTC) is also estimated. Finds are in three broad play types: 1) focused-seepage plays where predominantly aqueous hydrogen migrates with minimal trapping; 2) coalbed plays where hydrogen is adsorbed molecularly in coals; 3) reservoir-trap-seal plays with gaseous hydrogen trapped underneath an impermeable seal.

Focused-seepage plays have a low to modest hydrogen resource-density, low well-productivity and developments may co-produce large volumes of water. Only local-offtake opportunities may be pursued since larger offtake would require unrealistically large well counts and water-handling/disposal capacities. UTC is marginal to unattractive.

Coalbed hydrogen plays may have higher resource density but again, low well-productivity and developments may face environmental concerns (surface footprint, disposal of significant amounts of water and co-produced CO2 and/or methane). Coalbed plays are unlikely to be commercial as a standalone natural hydrogen development.

Only developments of reservoir-trap-seal plays could potentially achieve industrial offtake at attractive UTC but to date, no accumulations of this type have unambiguously been discovered.