Fortescue’s Bold Bet on Buried Hydrogen

Mining giant takes early stake in US natural hydrogen play as drilling tests commercial promise

23 Feb 2026

Fortescue is planting a calculated flag in one of energy’s newest frontiers. The Australian mining heavyweight has bought a 39.8 percent stake in HyTerra for about A$21.9 million, stepping into the still unproven world of naturally occurring hydrogen in the United States.

The prize lies beneath Kansas and Nebraska, where HyTerra controls acreage thought to hold underground hydrogen accumulations. Unlike conventional hydrogen, which must be manufactured using energy intensive processes, natural hydrogen could in theory be extracted straight from the ground. That promise has stirred curiosity across the energy sector, but commercial flows remain untested.

Drilling campaigns are planned and funded, yet the projects are firmly in exploration mode. No one has shown sustained production at scale. The next round of wells will be decisive, offering the first real clues about reservoir size, flow rates, and whether extraction can compete on cost.

For Fortescue, the move fits a broader pivot. Long known as an iron ore powerhouse, the company has spent recent years talking up hydrogen as central to its future. Backing HyTerra gives it early exposure to a potential new resource play without taking on full development risk. A minority position keeps the upside in view while limiting the downside if results disappoint.

HyTerra, for its part, gains more than cash. The backing of a global energy group bolsters its balance sheet and lends credibility as it gathers the subsurface data investors demand. Exploration companies live and die by what the drill bit reveals, and this partnership raises the stakes.

The timing also matters. US policy has thrown its weight behind cleaner hydrogen, offering production tax credits and other incentives aimed largely at manufactured low emission supply. Even so, the broader push has created capital flows and infrastructure that natural hydrogen ventures could tap if the geology cooperates.

Big questions remain about resource continuity, long term productivity, and economics. For now, Fortescue’s wager looks like a disciplined probe into uncertain terrain. The rocks will have the final say.