US Hydrogen Drilling Heats Up with Fresh Funding Surge

HyTerra and Koloma push natural hydrogen exploration as investor interest accelerates in Kansas and beyond

11 Sep 2025

The search for natural hydrogen in the US is gathering pace after HyTerra secured almost $22mn from Fortescue to expand drilling in Kansas, marking one of the boldest commitments yet to the emerging industry.

The funding will allow HyTerra to triple its programme from two wells to six and deepen geological studies in the state. Early results have reported hydrogen concentrations of more than 90 per cent, with traces of helium offering the potential for additional revenue streams. Fortescue's backing brings both capital and the endorsement of a major clean energy player.

The development is viewed as a significant step for so-called "white hydrogen", which forms naturally underground. Unlike hydrogen produced from fossil fuels or electrolysis, natural hydrogen could provide a lower-cost and lower-carbon supply if extraction proves viable. "This funding shows the industry is moving from theory into serious exploration," said one analyst. "If stable production follows, it could be transformative."

HyTerra's advance follows similar activity by Koloma, another US-based explorer that has raised about $400mn from investors including Breakthrough Energy Ventures, Amazon's Climate Pledge Fund and United Airlines. The group is preparing test wells in Idaho and Kansas. Interest has been further supported by recent US Geological Survey research indicating that natural hydrogen may be more widespread than previously thought.

Uncertainties remain over whether hydrogen can flow at scale and how existing oil and gas regulations will adapt. Nevertheless, early exploration results have been sufficient to attract growing investor attention.

The outcome of the Kansas wells is expected to be closely watched by policymakers, energy companies and potential buyers seeking clean fuel alternatives. Success could establish natural hydrogen as a new component of the US energy mix, sourced not from industrial plants but directly from underground reserves.