Exploitation and Commercialization Potential of Natural Hydrogen

Course Description

“Natural” or “Geological” Hydrogen is highlighted as a potential low-cost alternative source for the Energy Transition. Research suggesting substantial but highly speculative Exploration Potential has received prominent Media Attention.
Existing seminars and papers on natural hydrogen typically focus on the exploration aspects especially the understanding of hydrogen source-mechanisms and generation rates in the subsurface. However, to assign a commercial value to natural hydrogen exploration potential, one needs to start considering what possible exploitation projects might look like and what challenges (technical, commercial, environmental) these may face.

This seminar therefore takes a different approach. Assuming that exploration/research has successfully identified hydrogen sources in an area or province we then analyze, based on a combination of asset examples and analogue petroleum-exploitation concepts:
• How much hydrogen could concentrate or accumulate in the subsurface, in different settings and geological sites;
• How much hydrogen could be recovered from a subsurface site, what rates of hydrogen production might be achievable and for what duration could such production possibly be sustained;
• What development projects of such sites might look like. What kind of sites and projects could meet industrial supply. What would it take to mature a project from exploration through appraisal to eventual development and commercialization.

The main objective of the course is to provide participants with an understanding of the commercial exploitation potential of natural-hydrogen prospects in different settings (geological, geographical, industrial-supply opportunities)

Upon completion of the course, participants will understand the differences between the three basic forms of natural hydrogen storage in the subsurface (aqueous hydrogen, adsorbed hydrogen and trapped hydrogen gas) and why exploitation potential is very different depending on play type. Participants will understand some of the key factors that control attractiveness of different prospects and plays:
• Pressure and Phase of Hydrogen in the Subsurface
• Reservoir Quality and Resource Density of Hydrogen In-Place
• Applicable Drive Mechanisms and indicative Recovery Efficiency
• Potential well Production Rates

Participants will be guided through the assessment of hydrogen Unit Technical Cost (UTC) based on actual case studies. They will get to appreciate that for full, comprehensive analysis of the potential value of natural hydrogen exploration-prospects it is important not only assess prospective hydrogen resource-volumes but also estimate, based on data from the prospect or relevant analogues, at what rates this hydrogen could be extracted, what such extraction would involve in terms of drilling, gas processing and evacuation facilities and what by-products (e.g., water, other gases) may be co-produced. Synergy options with other resource exploitation (e.g., helium, geothermal) will be discussed. Finally, participants will gain an understanding of the steps involved in maturing a natural hydrogen project, from exploration through appraisal to eventual development and commercialization and again based on actual case-examples.

Course Objectives: 

Upon completion of the course, participants will understand the differences between the three basic forms of natural hydrogen storage in the subsurface (aqueous hydrogen, adsorbed hydrogen and trapped hydrogen gas) and why exploitation potential is very different depending on play type.

Participants will understand some of the key factors that control attractiveness of different prospects and plays: Pressure and Phase of Hydrogen in the Subsurface, Reservoir Quality and Resource Density of Hydrogen In-Place, Applicable Drive Mechanisms and indicative Recovery Efficiency, Potential well Production Rates

Participants will be guided through the assessment of hydrogen Unit Technical Cost (UTC) based on actual case studies. They will get to appreciate that for full, comprehensive analysis of the potential value of natural hydrogen exploration-prospects it is important not only assess prospective hydrogen resource-volumes but also estimate, based on data from the prospect or relevant analogues, at what rates this hydrogen could be extracted, what such extraction would involve in terms of drilling, gas processing and evacuation facilities and what by-products (e.g., water, other gases) may be co-produced. Synergy options with other resource exploitation (e.g., helium, geothermal) will be discussed.

Course Outline: 

Day 1 / Part 1:

• Introduction

• What is natural hydrogen?

  - Occurrences, play-types, fundamentals of in-place volumetrics and assessment of recovery potential.

• Commercial landscape for natural hydrogen 

   - Range in potential applications and takers, offtake rates required to meet industrial demand, etc.

• Diving into the subsurface details 

   - A zoom-in on some real-life natural hydrogen finds and prospects.

Day 2 / Part 2:

• Recap of Day 1 

• A side-step to stimulated hydrogen

  - Principles, opportunities and challenges ahead.

• Techno-Commercial analysis of natural hydrogen

  - Combining hypothetical outcomes of actual prospects with defined development schemes in an SPE-PRMS compliant manner.

  - Synergy options with other resource exploitation (helium, geothermal).

• Roadmaps for natural hydrogen resource maturation and commercialization

  - Appraisal requirements, technology trials and pilot production, SPE-PRMS or UNFC resource-maturation steps.

• Summary and Discussion

Participant’s Profile:

This course is targeted to all technical and managerial professionals with interest in natural hydrogen, either from an applied research perspective or from a business/investment perspective:

• Geoscientists, engineering professionals and technical managers working on natural hydrogen projects;

• Government staff or staff from public organizations/city councils involved in sustainable subsurface energy projects;

• Finance professionals and investors involved in the funding of natural hydrogen exploration and future exploitation

Prerequisites:

Recommended background knowledge/credentials to get best value out of this course:

1. At least 3 years exposure to the energy industry

2. A basic awareness of subsurface fundamentals would be advantageous, i.e., of some of the basic concepts of geoscience and reservoir engineering/reservoir physics

About the Instructor:

Arnout Everts is a broad-skilled geoscientist with a PhD in Geology from VU University Amsterdam, 34 years of energy-industry experience with Shell, PETRONAS, Murphy Oil, THREE60 Energy and since 2022 through his private consultancy AEGeo. His areas of expertise include techno-commercial project due-diligence, oil- and gas-field (re)development, resource assessments, geothermal resources, CO2 and hydrogen underground storage, and natural hydrogen. Through his career, Arnout has participated in and/or led over 100 energy projects spanning the entire project life-cycle, from frontier exploration to late field-life including conventional and unconventional hydrocarbons. In recent years his focus has shifted away from oil and gas and towards energy-transition opportunities and challenges pertaining to the uptake of renewables and underground storage. Arnout is an Active Member of AAPG, EAGE and GSM (Geological Society of Malaysia), a Professional Member of AGA (Australian Geothermal Association) and he has authored or co-authored some 34 research papers in international scientific journals. He has become a recognized authority in the emerging field of natural hydrogen, delivering a number of influential conference papers, writing a landmark paper on resource-assessment methodologies and upon invitation, joined the Hydrogen Science Coalition. Much of his recent experience is in techno-commercial advisory and Resources certification and as EuroGeologist title holder (EFG1435), Arnout is entitled to sign off on Company Reserves and Resources reports submitted to regulatory bodies.