Leveraging technology parallels from oil and gas, geothermal exploration and deployment could use pressure-tested policies to meet the moment of rising energy demand
WASHINGTON—Accumulating beneath the Earth’s surface, naturally occurring and engineered subsurface hydrogen could one day become a cost-competitive source of clean hydrogen, according to a new report from the Center for Climate and Energy Solutions (C2ES). Leveraging America’s existing strengths in geoscience and drilling could position the country to lead in early development, but targeted federal action is needed to determine whether the resource can be commercially developed at scale.
The C2ES report, Hydrogen Underground: The Prospects and Policy of Subsurface Hydrogen, examines the emerging field of geologic hydrogen, which includes both naturally accumulated hydrogen deposits and technologies designed to stimulate hydrogen production underground. The report concludes that subsurface hydrogen represents a potentially transformative opportunity worthy of further exploration, even as major uncertainties remain about resource size, recoverability, and commercial viability.
“Hydrogen is a crucial component in our economy, and a growing body of research suggests subsurface hydrogen could contribute to a scalable, low-carbon hydrogen supply.,” said John Holler, Low Carbon Fuels and Transportation Senior Fellow. “The early support needed to evaluate its potential will strengthen our understanding of the nation’s underground resources, benefiting everything from critical minerals to geothermal energy. This is a no-regrets investment that could significantly boost US competitiveness while reducing greenhouse gas emissions.”
Hydrogen is an essential feedstock for industries ranging from fertilizer production to refining, but today it is produced primarily through carbon-intensive processes. According to the report, subsurface hydrogen could provide a new pathway for expanding access to lower-emission hydrogen needed to support industrial competitiveness, energy security, and emerging applications in sectors such as aviation, shipping, and heavy transportation.
The report highlights several factors that make subsurface hydrogen particularly attractive. Early cost modeling suggests these projects could compete with conventional production methods, and lifecycle emissions may be substantially lower than those from hydrogen produced from natural gas. Recent research suggests the resource potential could be enormous, with an estimated global accumulation reaching 5.6 trillion tons. Promising geologic settings are found across much of the United States, including regions stretching from the Great Lakes to Texas, as well as areas in Appalachia and the western states.
Significant hurdles remain. It remains uncertain whether natural hydrogen can be found in producible accumulations, and stimulated production concepts must still show that hydrogen-generating reactions can be accelerated by orders of magnitude and controlled at reservoir scale. Additional challenges include improving geologic data, understanding underground hydrogen systems, attracting investment for demonstration projects, and establishing clear regulatory pathways for exploration and development.
To accelerate understanding of subsurface hydrogen, the report recommends that Congress establish a dedicated Department of Energy program for resource development, expand geologic mapping and data collection efforts, and clarify federal permitting and leasing authorities. These investments would not only help evaluate subsurface hydrogen but could also provide broader benefits for critical minerals, geothermal energy development, and other subsurface technologies.
Over the past several years, C2ES has engaged closely with leading companies across sectors to examine challenges and solutions to decarbonizing the U.S. economy by 2050. To inform policymakers considering these near- and long-term questions, C2ES launched a series of “Closer Look” briefs to investigate important facets of the decarbonization challenge, focusing on key technologies, critical policy instruments, and cross-sectoral challenges. These briefs explore policy implications and outline key steps needed to reach net zero by mid-century.
To speak with a C2ES expert, contact Tim Carroll at press@c2es.org.
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