ProtonH2’s ISHG process stimulates natural hydrogen generation in depleted oil reservoirs. The firm has said this unlocks trapped hydrogen and converts mineral reactions underground into a steady supply of fuel.

It involves injecting dioxygen (O2) into oil wells which reacts with hydrocarbons to generate high-concentration hydrogen syngas. Syngas can either be sold or separated into hydrogen for sale. However, the process does produce carbon dioxide (CO2). The company says ISHG “naturally sequesters” 15-20% of the CO2.

The firm has been developing Project Apollo, which aims to produce up to 500 tonnes per day of hydrogen from disused oil wells.

Frankfurt-based Path2 is aiming to build a complete hydrogen supply chain, from upstream to midstream uses. It already owns liquid hydrogen infrastructure firm GenH2, but ProtonH2 will provide the upstream link.

PathH2 said combining ProtonH2’s low-cost natural hydrogen with GenH2’s liquefaction and storage systems, which are “ideally suited” to ProtonH2 production sites, could accelerate deployment and lower supply chain costs.

GenH2 claims its cryogenic storage technology can control temperature, densification, and pressure to maintain super-lower temperatures and recondense hydrogen gas back into liquid to “eliminate” boil-off losses.

“This agreement represents a major step forward by combining scalable low CO2 hydrogen production at less than $0.75/kg with the leading liquid hydrogen midstream technology,” explained Josh McMorrow, Path2 Hydrogen CEO.

“ProtonH2’s advanced hydrogen production and power generation process complements our existing infrastructure and investment roadmap, adding both technological depth and global reach.”

The acquisition formalises a collaboration first established under a July memorandum of understanding.

Interest in natural hydrogen has grown rapidly as explorers and technology firms look for cheaper ways to produce the fuel.

However, experts caution that natural hydrogen’s commercial viability remains unproven, with much of it likely too deep or diffuse to extract economically.

Major producers like Air Products remain sceptical, viewing it as a speculative prospect rather than a near-term alternative to green or blue hydrogen.