Geologic Hydrogen Production Costs Fall Below $1 Per Kilogram

A Quebec-based startup is developing methods to extract naturally occurring hydrogen from underground deposits. U.S. Department of Energy estimates this approach could produce the fuel at less than $1 per kilogram. Less than 7% of planned green hydrogen projects were completed on schedule, according to a 2025 Nature Energy study tracking 190 projects over three years.

Quebec-based startup Vema Hydrogen is pursuing geologic hydrogen as a potentially lower-cost alternative.

Energy estimates show geologic hydrogen could be produced for less than $1 per kilogram. 00 per kilogram, and geologic hydrogen would also be cheaper than fossil fuel-derived hydrogen. Hydrogen can be combusted at high temperatures without releasing greenhouse gases. When burned, it leaves behind only water vapor.

Hydrogen can replace thermal coal in steelmaking and heavy fuel oil in industrial shipping. These sectors have been identified as difficult to decarbonize with other methods. Green hydrogen has been discussed in both public and private sectors for its potential use in hard-to-abate industries.