HyTerra Get Green Light for Second Nemaha Hydrogen Well

A few days after HyTerra received the green light to drill the Sue Duroche-3 well, they received clearance to drill a second hydrogen well at their flagship project. New site offers massive opportunities for hydrogen supply.

The approval comes less than a week after the company also received the drilling permit for the Sue Duroche-3 well. These approvals give HyTerra Limited (ASX:HYT) plenty of optionality for its upcoming drilling program in Q3 this year.

Drilling will prove up the potential of HYT’s 12,720 acre Nemaha project in Kansas to host both hydrogen and helium within a major industrial and manufacturing hub between Kansas City and Wichita.

White hydrogen could play significant role in growing economy

Finding naturally occurring hydrogen – also known as white hydrogen –  in commercial quantities will allow the company to quickly find offtakers as over 35% of US ammonia, a compound of hydrogen and nitrogen, is produced near its leases.

This will deliver revenue and also decarbonise sectors such as ammonia fertiliser by replacing the large quantities of hydrogen used in the manufacturing process that would otherwise be refined from fossil fuels.

Second permit to drill

The new permit to drill was received for the proposed Blythe 13-20 well that was staked about 1,400m east of the historical Scott-1 well that was drilled in 1982 and reported up to 56% hydrogen.

It sits about halfway between the Mid-Continent Rift System and the crest of the Nemaha Ridge and is interpreted to host a structural trap according to airborne gravity gradiometry and magnetic survey work.

HYT also has ~6,500 acres of wholly-owned and operated lease holdings geologically contiguous to this well, which has a planned total depth that is significantly deeper than Scott-1.

Managing director Benjamin Mee said the company was pleased to get its second well permit approved

“The original Scott-1 well only drilled approximately half of the sedimentary section and no basement,” he added.

“Like the recently permitted Sue Duroche-3, the planned well trajectories are going a lot deeper than the neighbouring historic wells to test these deeper sections.

“Given the geological play diversity available, we will continue the permitting of drilling locations of several independent hydrogen and helium prospects to support the final well selection for the company’s upcoming exploration program.”