Black & Veatch will study the exploration and extraction of natural H₂ and helium in Australia. The development study is an engineering services agreement between Australian-owned natural H₂ company H2EX Limited, a world leader in exploring naturally occurring H2, and Black & Veatch.

The study is part of an Australian Federal Government-funded project led by H2EX. Natural H₂, also known as gold or white H₂, refers to H₂ found in its natural form as a free gas.

“Decarbonization efforts in the Asia Pacific are a priority for Black & Veatch. This includes extracting natural H₂, a potential clean energy source for the region,” said Yatin Premchand, managing director, Strategic Growth, Global Advisory, Black & Veatch.

“Black & Veatch has an 80-year history working with H₂ and ammonia production in multiple industries. The company developed the first H₂ power generation conversion project and the first major H₂ fueling station deployment in the U.S. Since then, our experts have continued to deliver reliable innovation and first-of-a-kind solutions across the H₂ value chain,” said Premchand.

H₂ has the potential to reduce and replace reliance on fossil fuels for electricity generation as well as long-duration energy storage, heating, transport, and production of green chemicals and fertilizer. H₂ can also be turned into green ammonia, which is produced using 100% carbon-free renewable energy.

Helium is used in defense, medicine, manufacturing and energy applications including magnetic resonance imaging (MRI) scanners and fiber optic cable manufacturing.

Black & Veatch will provide two concept designs on H2EX’s exploration license PEL 691 on the Eyre Peninsula in South Australia as part of the development study. One concept design will be for the drilling and completion of an exploration well. The other concept design will be for surface facilities to purify, process and deliver natural H₂ and helium, including co-production of the resources, if they are found together.

“We are pleased to partner with a technically progressive and experienced global engineering services firm like Black & Veatch. This important development study will help H2EX fast-track our first exploration wells and development scheme. If successful, H₂ will be a great source of energy for power generation and transport on the Eyre Peninsula,” said Mark Hanna, H2EX CEO & managing director.

“Natural H₂ will help decarbonize the region, which predominantly uses liquid fuels for energy and transport. Helium is also a high-value and scarce commodity. Recent drilling in South Australia has found high concentrations of helium, too,” said Hanna.

Black & Veatch will analyze gas industry practices related to conventional well drilling and extraction infrastructure and identify key considerations to adapt these practices for natural H₂ and helium. The research into extraction solutions will provide a pathway to drill and extract the lowest-cost H₂, which could be up to 75% more cost-effective than manufacturing H₂.

The objective of the study is to unlock first-mover benefits for Australia within an emerging sector globally, as well as create substantial local and export opportunities while retaining the country’s competitive advantage and technical and engineering expertise.

The study is partly funded by Australia’s Federal Department of Science and Innovation through its Cooperative Research Council Projects (CRC-P) Grants Round 14 initiative. The CRC-P grant supports short-term, industry-led research collaborations. The study is estimated to be completed by mid-2024.

The Australian Government is investing more than $500 MM ($326 MM) to support the development of H₂ hubs in regional Australia. The Regional H₂ Hubs program is part of the government’s $40 B ($26 B) investment to transform the country into a powerhouse of green energy generation and innovation.