by Michelle Ma & David R Baker / © 2024, Bloomberg News. Distributed by Tribune Content Agency, LLC.
12
A new Gold Rush is taking shape on a quiet stretch of Kansas prairie. There, a clutch of startups backed by the likes of Bill Gates are searching below the surface for naturally occurring hydrogen, a fuel that can generate power without adding to climate change.
Finding it in vast quantities would revolutionize the energy transition. But the hunt is clean energy wildcatting, with a real possibility of failure—and the added risk of diverting limited climate venture capital at a time when the world needs proven emissions-cutting technologies.
Geology and money
Kansas sits atop a geological quirk: The Midcontinent Rift is a subterranean scar a billion years old created when North America started to split down the middle and then stopped. Iron-rich rocks within the rift can produce hydrogen when exposed to water, pressure and heat. And records left over from several old oil exploration wells in the area decades ago show the gas is—or at least was—present.
Other sites around the world also offer tantalizing hints of housing the lightest element in the universe, and the search is starting to attract money. One company, Koloma, has raised more than $300 million, including from Bill Gates’ Breakthrough Energy Ventures. Mining giant Fortescue Ltd. recently spent $22 million to buy a 40% stake in Australia-based HyTerra, one of the startups looking in Kansas.
A game-changer
Naturally occurring hydrogen holds the potential for what Wood Mackenzie analyst Richard Hood calls a “Spindletop moment,” referring to the 1901 Texas oil gusher that helped create the modern world. If it exists in commercial quantities, pumping hydrogen from the ground would be cheaper than stripping it from water using electricity and cleaner than making it from natural gas, the most common method.
“No question, there’s risk,” said Bruce Nurse, co-founder of PureWave Hydrogen, which has leased sites in three Kansas counties for exploration. “But it’s an energy source we need to go after here in the U.S., because manufactured hydrogen is not going to cut it.”
...
Visit Bloomberg News online.
