Michigan’s Early Move on Hydrogen Could Set the Pace

Michigan begins reviewing laws for geologic hydrogen, aiming to clarify rules and attract early investment

26 Feb 2026

Michigan has launched a formal review of its regulatory framework for natural hydrogen, seeking to clarify how the emerging sector would be governed under existing state law.

In January 2026, Governor Gretchen Whitmer signed a directive creating the Michigan Geologic Hydrogen Exploration and Preparedness Initiative. The order instructs state agencies to examine how naturally occurring hydrogen can be explored, produced and transported within current statutes. Rather than introducing immediate new rules, the initiative will assess existing authority, identify legal gaps and recommend steps to prepare for possible commercial activity. A report is due by April 1, 2026.

Natural hydrogen, sometimes referred to as geologic hydrogen, has attracted interest as a potential low-carbon energy source. In many states, however, regulatory systems were designed for oil and natural gas. That has created uncertainty over how hydrogen projects would be permitted and supervised.

Michigan’s review will examine how oil and gas laws apply to hydrogen resources and whether new guidance is required. Agencies will also consider environmental safeguards, infrastructure oversight and the treatment of subsurface property rights if exploration moves forward.

Whitmer has said the initiative is intended to position Michigan to assess whether it could become a leading region for natural hydrogen development. State officials are studying potential job creation, supply chain activity and longer-term economic effects linked to exploration and production.

Industry participants say clearer rules can lower investment risk. Defined permitting processes and transparent standards allow developers and investors to evaluate projects with greater certainty. Equipment suppliers, industrial gas groups and exploration companies are monitoring the state’s review, though no specific project commitments have been announced.

Open questions remain, including whether existing pipeline networks can safely transport hydrogen blends or require dedicated infrastructure. Until regulatory and technical issues are addressed, commercial timelines are likely to remain uncertain.

The review comes as federal hydrogen incentives and market support mechanisms continue to evolve. With national policy signals shifting, several states are assessing their own regulatory readiness. Michigan’s findings could influence how other jurisdictions approach the governance of natural hydrogen resources.