Hydrogen has the potential to be the fuel of the future – it’s light, storable, energy-dense and can be developed to provide clean energy.
Although is the most abundant element in the universe, hydrogen rarely exists in pure forms. Current production methods can be expensive, emissions-intensive and can require large amounts of water.
Gold Hydrogen Ltd (ASX:GHY)’s focus is on the Ramsay Project in South Australia where State Department geologists reported finding natural hydrogen gas while exploring for oil during the 1920s and 30s.
More than a century later, the company is looking at these results with a new understanding that naturally occurring hydrogen could be the key to unlocking a low-cost fuel source.
As a replacement for carbon-based fuels, naturally occurring hydrogen offers significant cost and emissions advantages relative to other sources of hydrogen production.
Gold Hydrogen has a 100% ownership of the Ramsay Project covering 7,820 square kilometres on the Yorke Peninsula and Kangaroo Island in South Australia.
Gold Hydrogen’s Ramsay Project tenements.
The Ramsay Project is Australia’s only proven naturally occurring hydrogen accumulation and has a certified unrisked prospective resource of 1.3 billion kilograms of natural hydrogen in PEL 687.
During the June quarter, Gold Hydrogen’s contractor Xcalibur Multiphysics undertook an 18,200-line kilometre airborne gravity-magnetic survey over the mainland component of the Ramsay Project.
The survey was designed to enhance subsurface understanding of rich natural hydrogen source rocks, structures, and identifying future well locations to mature the 1.3 billion kilograms resource.
Ramsay Project – Stage 1 airborne survey, PEL 687.
The data from the survey is in the process of being analysed by an independent expert so that it can be interpreted and integrated with Gold Hydrogen’s static and dynamic subsurface models and integrated with other datasets.
After this is complete, the resulting elevated subsurface definition across the surveyed area can be broken down into geological domains, prioritized by prospectivity, and also act as a guide for future activities, which will enable operations to be more focused and less impactful to surface owners and the community.
Major drilling suppliers secured
Following the end of the June quarter, Gold Hydrogen secured drilling and services contracts with internationally recognised SLB (formerly Schlumberger (NYSE:SLB)) and Savanna Energy Services (TSX:SVY) for its maiden drilling campaign.
Savanna Energy has been engaged to provide drilling services for the first exploration well on the Ramsay Project, which is designed to replicate the results of the historic Ramsay Oil Bore 1 which encountered natural hydrogen of up to 89% purity (on an air-corrected basis).
Savanna Energy has extensive international and domestic experience in drilling minimal disturbance conventional and unconventional wells in prime agricultural areas of Queensland.
Gold Hydrogen believes that this minimal disturbance style of drilling will mitigate any disruptions and impacts within the local community.
SLB, who have been involved with the Ramsay Project from inception, will continue to provide its specialist services which include geological services, mud logging and wireline services, as well as cementing services for the well.
CSIRO survey detects hydrogen
Gold Hydrogen recently welcomed the results of an experimental Stage 1 soil gas survey by the Commonwealth Scientific and Industrial Research Organisation (CSIRO) across the mainland part of the Ramsay Project.
Results from the first stage of the soil gas testing survey indicate that the CSIRO has detected hydrogen in soil in multiple locations.
Measured levels of hydrogen have been described as potentially indicating natural hydrogen seeps, with measured values noted as moderate at a few locations.
The first stage of the two-stage research and development soil-gas survey was undertaken to determine whether hydrogen gas can be detected in soils at surface above potentially prospective natural hydrogen locations.
Historical drilling activities recorded occurrences of up to 90% hydrogen (air corrected) in PEL 687 from depths >240-metres.
Independent technical experts have noted that the survey results at strategic locations are particularly encouraging since they are near geological faults that extend down into the basement rocks expected to be the source of the hydrogen.
These specific faults delineate the area used to determine the P90 Prospective Resource for the Ramsay Project, which ranges from a 1U low estimate of 207,000 tonnes to a 3U high estimate of 8.82 million tonnes with a mean estimate of 4.187 million tonnes.
After reviewing the CSIRO report the technical experts have a view that the seepage along these faults could imply that hydrogen has been generated in the subsurface, migrated upwards and may have filled a suitable subsurface reservoir covered by a seal preventing escape of the accumulation.
This finding supports the company’s belief that there is a naturally occurring hydrogen accumulation in its Ramsay Project area.
While the results are encouraging, the company notes that the only sure way to determine if there is a hydrogen accumulation in the area is to drill one or more wells, the first of which it plans to drill in October 2023.
Results from the well(s) will be integrated with the interpretations of the reprocessed seismic, airborne magnetic surveys and the soil test results to assist with further exploration planning.
Also providing encouragement for Gold Hydrogen was the presence of helium in multiple locations on PEL 687. Further studies will be undertaken to further understand the implications of this result.
When the company drills in October, its gas analysing system will check for helium as well as hydrogen.
Further CSIRO research and development is continuing and this data will be used to help identify further leads and prospects for the Ramsay Project.
The second stage soil-gas survey exploration technique will involve long-term measurement, and this has been tentatively scheduled for late 2023-early 2024.
Planning is in place to accelerate a second well at the company’s option.
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