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A Saskatoon mining company has tapped into what it describes as a major reservoir of hydrogen — the naturally occurring kind that’s widely believed to be a possible substitute for conventional fossil fuels.
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MAX Power Mining Corp. said it’s the first company in Canada to drill for natural hydrogen, having completed the country’s first-ever well near the town of Central Butte northwest of Regina. The company has a large stake in the area and elsewhere in the province.
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Chad Levesque, of investor relations with MAX Power, said a drilling contractor sunk a shaft underground and discovered the gas at a number of levels, with data analysis confirming concentrations of both hydrogen and helium.
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In an interview, Levesque described natural hydrogen as “a new world exploration phenomenon.” Mining it is less expensive compared to manufactured hydrogen, he said, and it is a much more ecologically friendly and cost effective way to get the fuel to market.
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Though discovered in commercial volumes in the African country of Mali in 1987, the mining and purification of natural hydrogen is in its nascent stage. As countries look for alternatives to fossil fuels like oil, coal and natural gas, natural hydrogen is being touted as a possible green-energy giant, whether as a fuel for electricity and heat, or used to power vehicles, manufacturing operations or in aviation and shipping.
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Traditionally, hydrogen has been manufactured using carbon intensive processes, Levesque said. Processes in the oil and gas industry, such as steam methane reforming, converts methane derived from natural gas into hydrogen. There is a massive industry for hydrogen around the world, he said.
“Hydrogen is a major industrial molecule with about a $250 billion a year marketplace,” he said. “But, as our energy needs are moving more towards decarbonized energies, natural hydrogen is that holy grail molecule, because the molecule is being produced sub-surface by Mother Nature as opposed to using carbon-intensive (fuels).”
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Steve Halabura, MAX Power’s chief geoscientist, said in a release the company’s first well at the discovery site showed promising signs, making him confident to keep drilling in the hopes of eventually producing the gas at scale.
“I can confidently say that MAX Power more than ever is on target for potential commercial discoveries of natural hydrogen in Saskatchewan,” Halabura said, adding that the positive data will accelerate the company’s exploration plans in Saskatchewan.
A fully-funded second well near the village of Bracken is currently undergoing a seismic geological survey that is expected to be complete before the end of the year. Bracken is part of the company’s Grasslands project, which spans 120,000 permitted acres. The company said the area is characterized by a rare grouping of rock, with known natural hydrogen and helium resources.
In the past roughly two years, drilling for natural hydrogen has commenced in several countries, including Australia, Brazil, France, United States, South Korea and Morocco.