Amid ongoing energy concerns, hydrogen is considered a critical component for industrial decarbonization. However, the global hydrogen energy sector faces challenges in sustainable production methods. Traditional approaches, such as steam methane reforming, generate approximately 9.3 kg of CO₂ emissions per kilogram of hydrogen produced, while grid-powered electrolysis produces substantial carbon emissions, presenting environmental and economic limitations for industrial applications.1
Image Credit: FOTOGRIN/Shutterstock.com
Koloma, a US-based technology company established in 2021, is developing geologic hydrogen extraction as an alternative approach. The company has secured over $400 million in funding from investors, including Breakthrough Energy Ventures, Khosla Ventures, Mitsubishi Heavy Industries, and United Airlines.2, 3
Koloma extracts naturally occurring hydrogen from underground geological formations using proprietary technology and exploration tools. This method requires minimal external energy inputs or water consumption while producing low carbon emissions. The project's significance lies in its potential to provide a clean hydrogen production pathway with lower energy inputs and feedstock costs compared to established methods.
Geological Foundations of Natural Hydrogen Formation
Geologic hydrogen is an inorganic resource generated by continuous geochemical processes, distinguishing it from finite fossil fuels. The primary formation mechanism is serpentinization, a chemical reaction that occurs when water interacts with iron-rich rocks such as olivine and pyroxene at temperatures between 200–300 °C.
In this process, the water oxidizes the iron minerals and releases hydrogen gas (H₂). These conditions are often found in specific geological settings, such as mid-continent rift systems and ophiolites.4
A secondary generation pathway is radiolysis, where natural radiation from radioactive elements in the Earth's crust splits water (H₂O) molecules into hydrogen and oxygen. Alpha, beta, and gamma radiation from radioactive elements interact with groundwater, producing hydrogen and oxygen gases continuously in radioactive formations.5
While global recoverable reserves are still being assessed, initial estimates suggest the resource is substantial. A 2022 report from the U.S. Geological Survey (USGS) indicated that the Earth's subsurface may contain trillions of tons of hydrogen, though only a fraction of this would likely be economically accessible.6
Koloma's Strategy for Exploration and Extraction
The principal challenge in commercializing geologic hydrogen is the exploration risk of locating deposits in economically viable concentrations. Koloma's business model focuses on mitigating this risk through a data-intensive approach. Although the company's specific methods are proprietary, its strategy involves several key components.
Data-driven geological modeling
Koloma employs data analytics and artificial intelligence to process geological datasets, including seismic surveys, satellite imagery, and geochemical information. The objective is to build predictive models that identify subsurface areas with a high probability of hydrogen accumulation, thereby increasing the efficiency of exploratory drilling.
Targeted exploration
The company is conducting exploratory operations in the U.S. Midwest. This region's geology includes the Midcontinent Rift System, which contains the types of iron-rich rock formations conducive to serpentinization.
Extraction techniques
Once a reservoir is confirmed, the planned extraction method is mechanically similar to that used for natural gas. A well is drilled into the formation, allowing the trapped gas to flow to the surface. Post-extraction processing would likely involve purifying the hydrogen to separate it from other gases, such as nitrogen or helium.
Comparative Analysis of Hydrogen Production Technologies
Koloma's approach offers a different operational profile from conventional hydrogen production methods. The main distinction is the minimal requirement for external energy or feedstock for hydrogen creation, which could translate into lower production costs.
Production Method Comparison
|
Parameter
|
Steam Methane Reforming (SMR)
|
Electrolysis (Renewable)
|
Natural (Geologic) Hydrogen
|
|
Primary Input
|
Natural Gas, Water, Heat
|
Water, Renewable Electricity
|
Minimal (Drilling & Compression Energy)
|
|
CO₂ Intensity
|
High (~9.3 kg CO₂/kg H₂)
|
Very Low (<0.5 kg CO₂/kg H₂)
|
Very Low (Projected <0.5 kg CO₂/kg H₂)
|
|
Energy Input
|
~45 kWh/kg H₂
|
High (~55 kWh/kg H₂)
|
Minimal (For extraction only)
|
|
Water Consumption
|
Moderate (~5 L/kg H₂)
|
High (~18 L/kg H₂)
|
Minimal to None
|
|
Main Advantage
|
Established, Lower Cost (Current)
|
Zero-Carbon Emissions
|
Potential for Low Cost & Low Carbon
|
|
Main Disadvantage
|
High Carbon Emissions
|
High Cost & Energy Use
|
Exploration Risk, Unproven at Scale
|
Source for SMR and Electrolysis data: International Energy Agency, 2023
Natural hydrogen production requires minimal energy input or water consumption while maintaining low carbon intensity. The subsurface extraction process uses less surface area than renewable energy infrastructure needed for electrolysis.
Commercialization Strategy and Market Applications
Koloma addresses barriers to natural hydrogen commercialization, including resource discovery, consistent production rates, and cost-competitive infrastructure development.
Resource discovery
Koloma's strategy relies on applying advanced data analytics to de-risk exploration, reducing reliance on traditional survey methods while minimizing land disturbance during prospecting.
Infrastructure development
Infrastructure challenges remain significant. Pipeline modifications for hydrogen transport can be costly, requiring specialized materials resistant to hydrogen embrittlement. Koloma collaborates with engineering partners to develop cost-effective infrastructure solutions and hydrogen-compatible materials.1
Policy support
The U.S. Inflation Reduction Act provides production tax credits of up to $3 per kilogram for qualifying clean hydrogen production. Koloma plans to utilize these incentives during initial commercial phases, improving project economics while establishing market presence.1
Download your PDF copy now!
Industrial Applications and Market Potential
The potential customer base for geologic hydrogen aligns with existing markets for clean hydrogen, including:
- Ammonia and fertilizer production: The global ammonia industry is a major consumer of hydrogen for fertilizer production
- Steel manufacturing: Direct reduction processes require significant quantities of hydrogen per ton of steel produced, potentially reducing steel production emissions compared to coal-based methods
- Production of sustainable aviation fuels (SAF): United Airlines' investment in Koloma reflects aviation industry interest in hydrogen-based sustainable fuels
- Heavy-duty transportation: Including long-haul trucking, maritime shipping sectors
- Energy storage: Hydrogen is noted for its high energy density, making it suitable for long-duration storage applications
Conclusion and Future Perspectives
Koloma’s approach to natural hydrogen represents a significant effort to address key challenges in the global hydrogen market through technological innovation and strategic resource development. Supported by established geological science and offering clear environmental advantages, such as minimal energy input and low carbon emissions, the company is well-positioned to test the commercial viability of geologic hydrogen.
The critical next phase for Koloma is to transition from successful exploration to proving sustained, commercial-scale production. Demonstrating consistent flow rates over extended periods is essential for securing the long-term industrial contracts needed for market entry. The successful development of geologic hydrogen, supported by policy incentives like the U.S. Inflation Reduction Act, could diversify clean energy supply chains and create economic activity in regions with favorable geology.
Ultimately, the long-term impact of Koloma's project will depend on its ability to prove resource scalability and achieve cost-competitiveness with other low-carbon hydrogen production methods, potentially introducing a new and disruptive supply stream to the clean energy mix.
References and Further Reading
- International Energy Agency. (2023). Global Hydrogen Review 2023. IEA. Available at: https://www.iea.org/reports/global-hydrogen-review-2023
- Koloma. (2024). About Us. Koloma. Available at: https://koloma.com/about-us/
- Hook, L. & White, E. (2024, January 25). Bill Gates-backed start-up hunts for natural hydrogen underground. Financial Times. Available at: https://www.ft.com/content/81819f64-1025-489b-959a-c3d9b14cc77a
- Jackson, O., Lawrence, S. R., Hutchinson, I. P., Stocks, A. E., Barnicoat, A. C., & Powney, M. (2024). Natural Hydrogen: Sources, Systems and Exploration Plays. Geoenergy. https://doi.org/10.1144/geoenergy2024-002
- Crawford, C. L. (2004). Hydrogen Production in Radioactive Solutions in the Defense Waste Processing Facility. Savannah River Site (S.C.). https://core.ac.uk/display/71229695
- U.S. Geological Survey. (2022, October). USGS-Led Research Finds Huge Volumes of Hydrogen are Naturally Produced in the Earth's Subsurface. USGS.gov. Available at: https://www.usgs.gov/news/national-news-release/usgs-led-research-finds-huge-volumes-hydrogen-are-naturally-produced
Disclaimer: The views expressed here are those of the author expressed in their private capacity and do not necessarily represent the views of AZoM.com Limited T/A AZoNetwork the owner and operator of this website. This disclaimer forms part of the Terms and conditions of use of this website.