HyTerra’s 96% Hydrogen Breakthrough, Indiana Hub Plans, & Chile’s $16B Hydrogen Megaproject

On today’s episode of The Hydrogen Podcast, we dive deep into three game-changing developments across the hydrogen industry:

🔹 HyTerra’s Natural Hydrogen Well in Kansas
HyTerra has recorded 96.1% hydrogen purity at its Sue Duroche 3 well—one of the highest concentrations ever documented. We unpack the geological hydrogen extraction process, economic forecasts at $0.50–$1/kg, and what this means for the future of naturally occurring hydrogen.

🔹 Indiana’s Push for a Regional Hydrogen Hub
Lawmakers are laying the groundwork for a hydrogen production hub in northwest Indiana, leveraging grid and nuclear-powered electrolysis. With potential backing from the DOE’s $8B hydrogen hubs program, we explore the economic and environmental stakes behind this Midwest initiative.

🔹 TotalEnergies’ $16 Billion Renewable Hydrogen Project in Chile
We analyze one of the world’s largest green hydrogen efforts—TotalEnergies' massive wind- and solar-powered electrolysis facility aimed at producing 3 million tonnes of ammonia per year. Find out how this sets a new benchmark for global hydrogen export models.

💡 This episode covers technical innovation, environmental impact, job creation, cost structures, and infrastructure scaling—whether you're investing, developing projects, or tracking hydrogen policy, this is essential listening.

📧 Feedback or questions? Email us at info@thehydrogenpodcast.com
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Transcript

Today, I’ll examine the groundbreaking well results from HyTerra in Kansas, a proposed hydrogen hub in Indiana, and a large-scale renewable-powered electrolysis project in Chile. Each segment will provide a comprehensive assessment of technological scalability, environmental performance, and economic potential, offering actionable insights into hydrogen’s evolving landscape. All of this on todays hydrogen podcast

Segment 1: Review of HyTerra’s Natural Hydrogen Well Results 

First up today in a press release on May 6, ASX announcement from HyTerra Limited, an Australian company pioneering geological hydrogen extraction. The announcement details exceptional results from the Sue Duroche 3 well at the Nemaha Project in Kansas, United States, marking a significant milestone in unlocking naturally occurring hydrogen resources.

Technology Overview: Geological hydrogen extraction involves drilling into subsurface formations to access hydrogen generated through natural processes, such as water-rock interactions in Pre-Cambrian basement rocks. The Sue Duroche 3 well, drilled to a total depth of 3,453 feet (1,052 meters), recorded hydrogen concentrations up to 96.1% in air-corrected mud gas samples, independently verified by Isotech Laboratories in Illinois. This high purity, among the highest in hydrogen exploration, validates historical data from the nearby Sue Duroche 2 well (92% in 2009), confirming a robust hydrogen play across the Nemaha Ridge. The well also detected elevated helium in the Pre-Cambrian basement, suggesting potential for dual-resource extraction, with further laboratory analysis pending.

The drilling program, executed by Murfin Rig 116 with Schlumberger’s formation evaluation, included real-time mud gas logging, wireline logging, rotary side-wall cores, and downhole water sampling. These data indicate reservoir zones with matrix porosity, dolomitization, and fractures, enhancing commercial prospects. The technology leverages conventional oil and gas drilling, ensuring high scalability where hydrogen-bearing formations are identified. Environmentally, the process is exceptionally clean, producing negligible NOx, SOx, and PM2.5, as extraction relies on mechanical drilling rather than combustion. Minor upstream emissions from drilling energy (typically diesel-powered rigs) are manageable with efficient operations.

Economic Insights: HyTerra estimates production costs could range from 0.5 to 1 USD/kg, significantly lower than manufactured hydrogen (2.5–6 USD/kg), assuming sufficient reserve volumes. The Nemaha Project’s 60,000-acre lease positions it near Midwest industrial markets, such as ammonia and petrochemical plants, reducing transport costs (0.10–0.30 USD/kg for pipeline delivery). Fortescue’s 21 million AUD investment for a 40% stake in 2024, announced in November 2024, funds an expanded six-well program, tripling the original scope and mitigating financial risk. Exploration CAPEX, estimated at 1–5 million USD per well, remains high, and geological uncertainty—pending downhole sampling and extended well testing—poses risks to reserve estimates.

The global hydrogen market, projected to reach $200 billion by 2030, offers strong demand, with U.S. industrial hubs like Kansas consuming 10 million tonnes annually. Helium, with a $6 billion market, adds a secondary revenue stream, though its economic impact depends on concentration and extraction feasibility. Investors face a high-reward opportunity but must account for exploration risks, similar to early-stage oil and gas ventures. HyTerra’s 100% ownership through HYT Operating LLC and its ASX listing (HYT) enhance its appeal for venture capital and institutional investors seeking exposure to emerging energy markets.

Narrative Impact: Geological hydrogen extraction challenges conventional production by offering a low-cost, clean alternative that bypasses energy-intensive manufacturing. Its reliance on established drilling infrastructure and proximity to markets position it as a disruptive force, potentially reducing dependence on traditional hydrogen supply chains. HyTerra’s results elevate the method’s credibility, prompting increased exploration globally.

Segment 2: Review of Indiana Hydrogen Hub Push 

Now lets turn to a May 5th, WISH-TV report outlining Indiana lawmakers’ ambitious efforts to establish a regional hydrogen hub in northwest Indiana. This initiative aims to catalyze economic growth and position the state as a leader in hydrogen production.

Technology Overview: The article does not specify production methods, but Indiana’s energy and industrial landscape suggests grid-powered electrolysis as the primary approach, potentially complemented by nuclear-powered electrolysis, given the state’s four nuclear reactors (e.g., at Michigan City). Grid-powered electrolysis uses electricity from a mix of hydrocarbon, nuclear, and renewable sources to split water into hydrogen and oxygen. The technology is mature, with commercial electrolyzers (e.g., alkaline, PEM) achieving efficiencies of 50–60 kWh/kg H2. Scalability is high due to widespread grid access, though expansion requires upgrades to transmission lines and substation capacity. Environmentally, electrolysis produces no NOx, SOx, or PM2.5 during operation, but upstream emissions depend on the grid’s composition, with Indiana’s 60% hydrocarbon-based grid (coal, gas) introducing moderate indirect emissions.

Nuclear-powered electrolysis, leveraging stable nuclear energy, offers near-zero emissions, as reactors produce no combustion-related pollutants. Its scalability is constrained by high capital costs and regulatory hurdles for new nuclear facilities, though small modular reactors (SMRs) could enhance feasibility. Both methods support Indiana’s target applications: steelmaking (e.g., U.S. Steel’s Gary Works), heavy transport, and industrial heating. The hub’s technological framework likely integrates hydrogen storage and pipeline infrastructure, drawing on Indiana’s existing natural gas networks.

Economic Insights: The hub is projected to create 2,000–5,000 jobs, spanning construction, operations, and supply chain roles, with economic multipliers stimulating local businesses (e.g., manufacturing, logistics). Grid-powered electrolysis costs range from 2.50–4.50 USD/kg, driven by electricity prices (7–10 cents/kWh in Indiana, per EIA 2024 data). Nuclear-powered electrolysis costs 3–5 USD/kg, potentially reducible to 2.5–3.5 USD/kg with SMRs, which lower CAPEX by 30–50% compared to traditional reactors. The hub’s CAPEX, estimated at $500 million–$1 billion for a 100 MW facility, could be offset by the U.S. Department of Energy’s $8 billion Regional Clean Hydrogen Hubs program, with Indiana competing for a $1–2 billion grant.

The U.S. hydrogen market, valued at $10 billion in 2024, is expected to grow at 15% annually, driven by industrial demand (6 million tonnes/year). Indiana’s hub targets 50,000–100,000 tonnes/year, capturing 1–2% of national demand. Investment risks include electricity price volatility (10–20% annual fluctuations) and policy delays, as federal funding requires environmental and community approvals. Private equity and infrastructure funds benefit from job creation and regional economic growth, but returns depend on securing long-term offtake agreements with steel and transport sectors. Indiana’s proximity to Chicago’s industrial corridor enhances market access, reducing transport costs (0.20–0.50 USD/kg).

Narrative Impact: The Indiana hub positions hydrogen as a driver of regional economic revitalization, leveraging existing energy and industrial infrastructure. It underscores the scalability of electrolysis-based methods, shifting the narrative toward localized production models that integrate with national energy strategies. The hub’s success could inspire similar initiatives in other industrial heartlands, redefining hydrogen’s role in economic development.

Segment 3: Review of TotalEnergies’ Renewable-Powered Electrolysis Project in Chile 

Our third review examines a May 5, Reuters report on TotalEnergies’ $16 billion renewable-powered electrolysis project in southern Chile, designed to produce hydrogen-derived ammonia for global export markets.

Technology Overview: The project harnesses Chile’s abundant wind and solar resources to power 1.5 GW of electrolyzers, producing hydrogen that is synthesized into 3 million tonnes of ammonia annually by 2030. Renewable-powered electrolysis splits water using electricity from renewable sources, generating no NOx, SOx, or PM2.5, making it one of the cleanest production methods. Scalability is constrained by electrolyzer manufacturing capacity (global supply: 10 GW/year in 2025) and renewable energy infrastructure, though Chile’s Patagonia region offers 70 GW of untapped wind potential. The project requires advanced grid management to handle intermittent renewable inputs, likely using battery storage and hydrogen buffering systems.

Ammonia synthesis, combining hydrogen with nitrogen via the Haber-Bosch process, is energy-intensive (8–10 MWh/tonne ammonia) but leverages mature technology. The project includes port facilities for ammonia export, primarily to Asia (e.g., Japan, South Korea) and Europe, aligning with global hydrogen trade routes. Technological challenges include electrolyzer durability (5–10-year lifespan) and ammonia transport logistics, requiring specialized vessels to minimize losses.

Economic Insights: Hydrogen production costs are estimated at 5–6 USD/kg, reflecting high CAPEX ($16 billion, including electrolyzers, renewables, and port infrastructure). Chile’s low renewable energy costs (2–3 cents/kWh, per IRENA 2024) and economies of scale could reduce costs to 3–4 USD/kg by 2035, competitive with global benchmarks. The global ammonia market, valued at $80 billion in 2024, is projected to grow at 4% annually, driven by fertilizer and industrial demand. Export costs add 0.50–1 USD/kg due to shipping (10,000 km routes), but long-term contracts with Asian buyers mitigate price risks.

TotalEnergies’ $200 billion market cap and diversified portfolio (oil, gas, renewables) ensure financial stability, though the project’s 10–15-year payback period challenges short-term investors. The global hydrogen trade, expected to reach $280 billion by 2050, supports the project’s export focus, but currency fluctuations (e.g., USD/CLP volatility) and geopolitical trade barriers (e.g., EU tariffs) pose risks. Private equity and sovereign wealth funds benefit from Chile’s stable regulatory environment and TotalEnergies’ track record, but must hedge against long-term market uncertainties.

Narrative Impact: This project establishes renewable-powered electrolysis as a cornerstone of global hydrogen supply, emphasizing large-scale, export-driven models. It challenges smaller producers by demonstrating the economic viability of mega-projects, shifting the narrative toward hydrogen as a tradable commodity akin to LNG.

Alright, that’s it for me, everyone.  If you have a second, I would really appreciate it if you could leave a good review on whatever platform you listen to. Apple podcasts, Spotify, Google, YouTube, etc. That would be a tremendous help to the show. And as always if you ever have any feedback, you are welcome to email me directly at info@thehydrogepodcast.com. So until next time, keep your eyes up and honor one another.