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February 8, 2024
By
Alan Ohnsman

Energy Department Awards $20 Million For Research Into Carbon-Free Geologic Hydrogen


The U.S. Energy Department is awarding the first-ever funds to research labs, universities and private
 companies to develop ways to turn naturally occurring underground hydrogen into a new source of clean power. Getty

There’s growing awareness that hydrogen generated naturally in underground pockets across the U.S. could be a vast source of carbon-free energy. To help make that happen, the Energy Department announced Thursday that it’s awarding research grants to top U.S. laboratories, universities and private companies including Koloma, a well-funded startup backed by Bill Gates that has quickly become the new industry’s most prominent.

About $20 million in grants are being distributed to 16 teams, with a focus on developing ways to help stimulate the generation and flow of underground hydrogen and to refinine engineering techniques to extract the elemental fuel, the DOE’s Advanced Research Projects Agency-Energy told Forbes. While the total dollar amount isn’t high, the R&D program is the first of its kind for naturally occurring hydrogen.

“With funding from ARPA-E, project teams from across the nation will explore the possibility of accelerating the production and extraction of natural hydrogen, transforming our understanding of this critical energy resource while accelerating solutions we need to lower energy costs and increase our nation’s energy security,” Evelyn Wang, the agency’s director, said in a statement.

Recipients include the Lawrence Berkeley, Lawrence Livermore and Los Alamos national laboratories, the Colorado School of Mines, MIT, the University of Southern California, the University of Texas and Texas A&M. Koloma, one of just four private companies getting grants, has raised more than $100 million from investors including Bill Gates’ Breakthrough Energy Ventures and is moving quickly to be the first to drill for underground hydrogen.

Hydrogen’s flexibility as an energy source — it can be used to cut carbon emissions from steel, chemical, oil refining and ammonia production, power vehicles, store or make electricity — makes it a compelling clean fuel. But extracting it from water and other non-fossil fuel sources remains costly. Geologic hydrogen is particularly attractive because it promises to be the lowest-cost form of the fuel and utilizes drilling techniques long mastered by the oil and gas industry.

“We share the DOE's view that this technology presents a tremendous opportunity to produce low cost, low carbon, domestically-sourced hydrogen,” said Pete Johnson, Koloma’s CEO. “We're excited to work with the agency on this crucial area of development.”

Additional private company recipients include Eden GeoPower, New England Research and 39 Alpha Research.

Unlike oil and gas deposits, which are both dirty and finite, geologic hydrogen is generated continuously. There are different theories as to how it’s created, but the prevailing one is that it’s a byproduct of a continuous chemical reaction of heat and water mixing with iron in an oxidation state. It’s often found near fault lines such as the Midcontinent Rift running through the central U.S and initial estimates by the U.S. Geological Survey suggest it’s highly abundant.

Globally, the amount of geologic hydrogen may be “astronomical” based on how common the conditions needed to generate it appear to be, Doug Wicks, a program director for ARPA-E, told Forbes last year. He estimated it could be as much as 150 million metric tons.


 

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