Colorado Deal Hints at Early Momentum in Natural Hydrogen

A Colorado land deal shows how early explorers are quietly positioning for natural hydrogen, long before commercial proof arrives

6 Jan 2026

Primary Hydrogen’s acquisition of the Dove Creek project in southwestern Colorado marks a small but notable step in the early development of natural hydrogen exploration in the US.

The project, covering about 744 acres, is modest in scale by energy industry standards. But it places Primary Hydrogen among a small group of companies testing whether hydrogen formed naturally underground could eventually supplement conventional energy supplies. The sector remains at an exploratory stage, with no commercial production yet demonstrated.

Natural hydrogen has attracted growing attention because it is created through geological processes rather than industrial methods such as electrolysis or steam methane reforming. Advocates say this could lower both costs and emissions. However, confirmed discoveries have so far been limited, mostly outside the US, and largely within academic or research-led studies rather than active development projects.

The Dove Creek site stands out because it represents a move toward field-based exploration. The Paradox Basin has been extensively studied through decades of oil, gas and helium activity, leaving a large body of subsurface data. That history reduces some geological uncertainty compared with frontier basins, although the presence of hydrogen in commercially viable volumes remains unproven.

Primary Hydrogen has taken full ownership of the site, giving it control over exploration plans and timelines. Industry observers say such flexibility is becoming common among early-stage natural hydrogen developers, who want to adjust strategies as data emerges without the constraints of joint ventures or legacy infrastructure.

Rather than pursuing near-term production, companies entering the space are focused on gathering evidence. Key questions remain unresolved, including whether hydrogen can be found consistently in meaningful quantities, whether it can be extracted reliably, and how regulators will classify a resource that does not fit neatly into existing oil and gas frameworks.

Interest in natural hydrogen is being driven by its theoretical potential and by broader efforts to diversify clean energy sources. Governments and investors are watching closely, but expectations remain cautious.

The Dove Creek acquisition is unlikely to have an immediate impact on US energy markets. Still, it reflects a shift from academic curiosity toward practical testing. In Colorado’s subsurface, a quiet experiment is beginning.