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A natural hydrogen well takes a football-sized field to drill, but once complete a wellhead measures about 1mx1m.

An aerial photo of Gold Hydrogen's PEL 687 site during the previous drilling campaign

New reports of cost blowouts for the production of man-made (green) hydrogen from Australia’s two largest projects should surprise no one.

We’ve long predicted costs in excess of $6 per kg of hydrogen from the man-made process.

In fact, InterContinental Energy, co-owner of two mega developments in Western Australia worth a combined $136bn, has conceded initial costs for delivering green hydrogen is estimated at between $8 and $11 a kg.

The energy giant is bullish in predicting green hydrogen costs to eventually fall to about $4 a kg but even at those levels experts say it will be too expensive to compete with rival fuel sources.

All this does is highlight the advantages of natural hydrogen, which, if all went well and companies like Gold Hydrogen can flow the gas to surface, could cost as little as $1 a kg.

As MST Marquee analyst Saul Kavonic told The Australian this week, that’s the sort of price point that would make the world of difference.

“Hydrogen prices need to be below $2 a kilogram to become close to competitive with other energy sources – $8-11 a kilogram equates to over $60 a gigajoule, which no major energy user can afford,” Mr Kavonic was quoted as saying.

Though the revelations will be causing concern to a Government that has staked billions on green hydrogen, there continues to be no doubt that one of the biggest industries that needs hydrogen’s zero-carbon power, transport, is just waiting for a supply solution.

A new article on BBC’s TopGear points out that 12 per cent of Heavy Goods Vehicle manufacturers are preparing to launch hydrogen-powered vehicles in the next five years.

Car manufacturers are also pushing ahead with fuel cell options.

Speaking at a forum organised by BMW recently, the project managing chief for its hydrogen tech, Dr Jürgen Guldner, observed: "We need to get over those few first 10,000 units where economies of scale make sense, and then the cost curve will come down."

Hyundai’s got the next-gen Nexo coming later this year, and BMW’s iX5 pilot was so successful the German carmaker is readying a production fuel-cell electric vehicle by 2028 using Toyota technology.

According to Toyota, there are already 75,000 fuel-cell vehicles on the road globally.

And it is small beers, but did you know the UK already has 16 hydrogen refuelling stations up and running?

So there is no shortage of willingness for hydrogen to work.

Technology advances and the cost of resources will help green hydrogen eventually. In the meantime, the world needs successful natural hydrogen plays.

At Gold Hydrogen, we’re working hard to get to pilot project stage.

We’re on track to be drilling more test wells in South Australia later this year. Funding is no problem, applications are waiting to be signed off and contractors have tendered for the work.

This is the most exciting time in our existence.

Can we help bridge the hydrogen supply gap? Let’s find out.

Meanwhile, interest in our plans continues to attract international media attention.

UK-based business media organisation Kallanish Commodities recently did a Q&A with me about natural hydrogen and the impact it could have.

Don’t doubt the need for hydrogen