US Energy Department Announces First Funding For Underground Hydrogen Energy

The U.S. Energy Department is stepping up its fight against climate change by launching its first-ever funding for a revolutionary form of clean energy: underground hydrogen.

As reported by Forbes on Thursday, the department has established a $20 million fund aiming to discover more efficient methods of extracting and stimulating the production of hydrogen made underground.

This grant initiative forms a part of the Biden Administration’s broader strategy to boost carbon-free energy production in the U.S.

The program is set to offer advantages to emerging companies like Koloma, which enjoys support from Bill Gates‘ Breakthrough Energy Ventures, Australia’s HyTerra and Natural Hydrogen Energy. These companies are already conducting test drilling operations in Midwestern states such as Kansas and Nebraska.

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According to ARPA-E Director Evelyn Wang, they are exploring novel approaches to access geologic hydrogen and harness its potential for accelerated hydrogen production.

Geologic hydrogen holds significant appeal due to its potential to become the most cost-effective form of fuel. It employs drilling techniques that have long been established within the oil and gas industry.

Unlike finite and environmentally harmful oil and gas deposits, geologic hydrogen is continuously generated.

Pete Johnson, the co-founder and CEO of the Denver-based company, emphasized its commitment to a future energy economy where geologic hydrogen plays a pivotal role in achieving decarbonization. He expressed gratitude for the Department of Energy’s recognition of this potential and their enthusiasm for the prospect of collaborating on this groundbreaking resource development.

The market performance of hydrogen-related stocks has been rather dismal over the past year. The Global X Hydrogen ETF HYDR has lost a third of its value compared to September 2022, and two thirds since its inception in July 2021.

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