Introduction
The mining industry stands on the brink of a significant shift towards clean energy, with hydrogen playing a crucial role. Fortescue, a major Australian mining group, has led this transition by investing heavily in green hydrogen projects. However, the recent discovery of white hydrogen could reshape the industry’s clean energy landscape.
What is White Hydrogen?
White hydrogen, a form of hydrogen found underground, results from the reaction of rainwater with certain minerals. Classified as a renewable energy source, it differs from green hydrogen, which is produced using non-fossil fueled electricity. The presence of high concentrations of helium in abandoned wells where it is found further enhances its value.
Fortescue’s Shift Towards White Hydrogen
Despite its initial commitment to green hydrogen projects, Fortescue has recently shown signs of shifting its focus. The company missed earnings expectations, and rising electricity costs have made green hydrogen less price-competitive. Fortescue responded by scaling back its green initiatives and laying off 700 employees.
However, the company’s recent $14 million investment in a small Australian firm focused on drilling for white hydrogen indicates a new direction. The target firm’s acreage, located in Kansas and Nebraska, lies conveniently near pipelines and potential users. Drilling will commence in late 2024 or early 2025 to determine the commercial viability of the findings.
Potential Impact
If estimates are correct, producing it could cost one-third as much as producing green hydrogen. This significant cost difference could render green hydrogen production projects less attractive and potentially wasteful in terms of government subsidies. The availability of cheaper white hydrogen could transform hydrogen into an economical energy source rather than a specialty product.
Future
The success depends on several factors, including the presence of sufficient quantities and the identification of enough locations. Potential sites in the eastern United States and Europe have already been identified. If these conditions are met, it could revolutionize the clean energy landscape within the mining industry and beyond.
Conclusion
The discovery of white hydrogen has the potential to reshape the mining industry’s approach to clean energy. With its lower production costs and the presence of valuable helium, white hydrogen could become a game-changer for companies like Fortescue. As drilling commences in the coming years, the industry will watch closely to see if it can live up to its promise as a cost-effective and renewable energy source.
Read more: Gold Hydrogen : Scientists Warn as Industries Rush to Harvest
