WoodMac Natural Hydrogen Report

A global energy expert believes natural hydrogen could eventually supply 12% of the world’s low-carbon demand.

Research, analytics, and consultancy firm Wood Mackenzie, who specialise in energy, has released its first report on natural hydrogen, saying the failure of many man-made green hydrogen plans has put the natural hydrogen option more in the spotlight.

"The low-carbon hydrogen sector had a tough 2025. The key challenge facing the industry isn’t a lack of demand, but a struggle to reduce costs," The report said "Unlike green or blue hydrogen, both of which require inefficient conversion processes, natural hydrogen comes oven-ready and – potentially – at a much lower cost."

Wood Mackenzie said it was tracking 60 natural hydrogen projects globally, though others have put the number of projects at about 100.

If initial wells confirm commercially viable accumulations, Wood Mackenzie said the industry had a bright future.

"Realistically, natural hydrogen is likely to remain a niche sector. That said, if exploration proves successful, the technical production potential from announced prospective resources could reach 20 Mtpa by 2050 – equivalent to around 12% of all low-carbon hydrogen supply by this time." 

Wood said success would likely need better technology, capital and regulation.

Full report below: