Key points
- There is potential for hydrogen to be naturally generated beneath the wheat fields of South Australia's Eyre Peninsula.
- Perth-based startup H2EX is on a mission to turn this invisible gas into a viable clean energy opportunity.
- H2EX has leveraged three different CSIRO programs overs three years to help build both their technical capability and commercial confidence.
In the hydrogen rainbow, every colour tells a story – grey from fossil fuels, blue from natural gas, green from renewables. But the most intriguing may be white (gold): naturally occurring hydrogen formed deep underground through geological processes.
Beneath the wheat fields of South Australia's Eyre Peninsula, there is potential for hydrogen to be naturally generated underground, forming part of a natural geological system distinct from the hydrogen produced in factories.
When hydrogen is used to produce heat, or converted to electricity in a fuel cell, there are non-carbon emissions. Renewable hydrogen can be used as both a chemical reductant and source of heat to reduce coal use in iron and steel making plants, replace natural gas burners in heavy industry, and power vehicles in heavy transport.
This natural phenomenon caught the attention of H2EX , a Perth startup on a mission to turn an invisible gas into a viable clean energy opportunity.
In 2022, co-founders Greschen Brecker and Mark Hanna secured Petroleum Exploration Licence (PEL) 691 , a patch of South Australian countryside covering 5,991 km² in area (about the size of Bali).
But there was a catch.
Unlike oil or gas, hydrogen is colourless, lighter than air and prone to escape. Global exploration know-how is limited and the science of where, why and how it accumulates is still emerging .
From satellite pixels to prospectivity corridors
H2EX knew they needed both innovative science and cost-effective methods to guide their search. Having followed CSIRO's early research into natural hydrogen with keen interest since the company's inception in 2021, they turned to CSIRO's Kick-Start program for help.
Kick-Start offers up to $50,000 in matched funding to help small-to-medium businesses access CSIRO's world-class research facilities and expertise, with the flexibility to apply at any time and rapid approval processes - crucial for startups working against exploration licence timeframes.
Their first project in 2022 teamed them with CSIRO principal research scientist Dr Laurent Langhi in what became a true desktop detective story. The H2EX team wove together satellite thermal imagery, gravity and magnetic geophysical data, historical well logs and regional geology maps to pinpoint where hydrogen might be seeping to the surface.
The result was the Eyre Peninsula's first integrated hydrogen prospectivity map – a map highlighting slender 'corridors' where conditions suggest hydrogen gas is most likely rising through ancient faults to the surface. By turning millions of data pixels into geological insights, this Kick-Start study gave H2EX a clear sense of where to focus on the ground, out of an area so large it would be impractical to canvass corner-to-corner.
"CSIRO is able to bridge the gap between academia and industry, an essential requirement in our nascent industry as we move from theoretical models to real-world resource exploration," said H2EX CEO Mark Hanna, reflecting on the value of collaborating with CSIRO's scientists.
Equipped with a data-driven target map, the H2EX team had a head start in the race to discover natural hydrogen in this area.
Sniffing hydrogen in the soil
H2EX followed their desktop work with a second Kick-Start project in 2023 – this time taking the search to the field. With CSIRO geologist Dr Ema Frery, they used handheld detectors to survey soil gas across their licence. The results confirmed hydrogen was present in predicted areas.
"Where we hypothesised the hydrogen to be generated subsurface is where we found hydrogen in the soil," H2EX CFO Greschen Brecker said. "That validated our new screening tool and gave us confidence to move to the next phase."
While the field work progressed Greschen joined CSIRO's Innovate to Grow program . As a first-time entrepreneur transitioning from corporate specialist to startup co-founder, Greschen needed to stretch across multiple disciplines in the novel natural hydrogen space. The eight-week, self-paced program connected her with experienced facilitators and fellow entrepreneurs, helping her develop robust business models and investment-ready propositions.
"The Innovate to Grow program was well run by knowledgeable facilitators, a fantastic course as I embarked on a new entrepreneurial adventure," Greschen said.
The program's combination of expert guidance and peer learning gave her the confidence to navigate H2EX's path from technical discovery to commercial viability.
Scaling up with space-age sensing
In 2023, H2EX became the first natural hydrogen company to win a Cooperative Research Centres Projects (CRC-P) grant (Round 14) , securing over $860,000 to accelerate exploration.
Partnering with the Adelaide University, Australian National University and Black & Veatch, they began building a blueprint for low-impact hydrogen exploration and extraction.
The grant also funded deeper analysis of the region's geological history. CSIRO's examination of historic drill core samples revealed trapped hydrogen subsurface on H2EX's licence – the first such discovery on the Eyre Peninsula and crucial validation of their exploration model.
To refine their drill targets, H2EX utilised Fleet Space Technologies to deploy satellite-linked seismic sensors that 'listen' for crustal vibrations. This cutting-edge technology will help them pinpoint the most promising locations while minimising ground disturbance.
Deep science to de-risk drilling
Building on this momentum, in 2024, H2EX collaborated with CSIRO and the University of Western Australia (UWA) through the CSIRO Industry PhD (iPhD) program . The four-year doctoral project will model hydrogen and helium accumulation patterns in the region, helping to reduce geological risk before expensive drilling begins. As well as providing H2EX with valuable data, the iPhD project enables H2EX collaboration with CSIRO and UWA researchers, while supporting the development of the next generation of industry-ready researchers.
This comprehensive approach – from GIS mapping, field surveying to core sampling and PhD-level modelling – represents a new blueprint for natural hydrogen exploration that could accelerate the global hunt for this elusive clean fuel.
With exploration drilling targeted for 2026, H2EX is moving closer to proving that naturally sourced hydrogen can power local industry at potentially 75 per cent lower cost than manufactured alternatives, while delivering the ultra-low emissions that climate goals demand.
From lab to launch pad
H2EX's journey from startup idea to drilling program illustrates how sustained research partnerships can transform speculative science into viable business. By leveraging three different CSIRO programs over three years, the company has built both technical capability and commercial confidence.
"The 2022 Kick-Start project has commenced a long-standing working relationship with CSIRO which will see us working together through to 2028 at least," Greschen reflected.
For the farmers, miners and ferry operators of the Eyre Peninsula, those hydrogen bubbles rising quietly beneath their feet may soon power a cleaner energy future – one that started with satellite pixels and scientific curiosity but could end with a transformed local economy.
Whether hunting hydrogen or growing the next breakthrough technology, the path from laboratory to marketplace often requires exactly this kind of patient, methodical collaboration between research and industry.
Learn more about CSIRO's SME Connect programs for your business.
Learn more about CSIRO's energy research: Energy - CSIRO .
Learn more about CSIRO's Industry PhD program .
