A Hidden Gas May Reshape the U.S. Clean Energy Map

Early wells in the west examine whether underground hydrogen could become a new clean energy source

22 Dec 2025

Pilot drilling in the western United States is testing whether naturally occurring hydrogen could play a future role in the country’s clean energy mix, as interest grows from investors and policymakers seeking alternatives to costly manufactured hydrogen.

Natural hydrogen, sometimes known as geologic hydrogen, forms underground through chemical reactions in certain rock formations. Until recently it was largely the subject of academic study. The current test wells, drilled at an early stage, are designed to assess whether hydrogen is present in sufficient quantities and whether it can be produced reliably.

The projects are exploratory rather than commercial. Companies involved say the aim is to gather geological and engineering data, not to supply fuel. But the work represents a shift for a sector that has so far lacked evidence from real-world drilling.

Unlike most hydrogen used today, which is produced from natural gas or through electricity-intensive electrolysis, natural hydrogen does not require an industrial manufacturing process. Proponents argue that, if it can be extracted at scale, it could offer a lower-cost and lower-emissions option for some uses. Whether that is feasible remains uncertain, and the pilots are intended to test those assumptions.

Interest has been strengthened by the involvement of large corporate backers. Investors including Amazon and United Airlines have supported companies exploring natural hydrogen, signalling that groups with long-term decarbonisation targets are monitoring the technology. Their backing reflects a search for additional options rather than confidence in near-term deployment.

The timing is significant. Demand for hydrogen is expected to rise as heavy industry, aviation and shipping look to reduce emissions. At the same time, the high costs and infrastructure challenges associated with green hydrogen have led investors to examine alternative sources that could diversify supply.

Major questions remain unresolved. There is no confirmation that underground hydrogen can be produced at stable, commercial levels, and regulatory frameworks are still being developed. Companies involved say early projects are proceeding cautiously, with an emphasis on data collection and disclosure rather than rapid expansion.

Even so, the results are expected to shape future decisions. Data from the test wells will inform investors, regulators and policymakers assessing hydrogen’s long-term role in energy systems. Natural hydrogen has yet to prove itself as a solution, but early drilling has moved it from theory into the centre of the energy debate.