The company said the Petroleum Agency SA had accepted two applications for review, with final approval still required from the Minister of Mines and Energy.

If approved, the three-year licenses would allow H2Au to search for natural hydrogen in around 3.4 million acres in the Bushveld region, where the company claims its own studies revealed “promising results.”

H2Au CEO, Owain Jackson, said the work “reinforced our confidence” in the region’s natural hydrogen potential.

The firm said the areas had been “high-graded” for natural hydrogen potential and lie within a “major industrial and mining corridor,” where it says it has begun early-stage discussions with potential offtakers in power, heat, and fertiliser sectors.

The company is also seeking joint venture partners to help fund exploration and, if successful, support future development and commercialisation.

The South African rights could add to H2Au’s exploration operations, which include an operator license in Kansas.

Natural hydrogen, also known as white hydrogen, is formed by natural geological processes within the Earth’s crust, where it can accumulate and continue to be generated over time.

It has gained attention for its potential to deliver huge volumes of low-cost, low-carbon hydrogen. There are estimated to be over 40 companies worldwide exploring for natural hydrogen reserves today.

However, the extraction of natural hydrogen is still very much in its infancy. While proponents suggest existing oil and gas technologies and processes could be used, more research efforts are required.