Scientists explore underground hydrogen storage to lower costs by 30%

Scientists and energy firms are racing to locate underground hydrogen deposits across the United States and Europe, a move that could unlock a cheap, carbon‑free fuel for the next decade. The push began in early 2024 after the U.S. Department of Energy announced a new $50 million grant for hydrogen storage research, and the European Commission released a €1.5 billion “Hydrogen Valley” roadmap. The first sites targeted are salt caverns in the Gulf Coast and the North Sea, where existing infrastructure can be repurposed for storage.

Hydrogen is a zero‑carbon energy carrier, but its low density makes it expensive to transport. Storing it underground in depleted gas fields or salt formations can hold millions of cubic metres of hydrogen, turning the planet’s abandoned wells into a new energy reserve. The technology is already proven for natural gas, so regulators are eager to see if the same approach works for hydrogen. Climate targets, such as the U.S. goal of 100 % clean electricity by 2035 and the EU’s 55 % emissions cut by 2030, hinge on reliable, large‑scale hydrogen storage.

Shell, Equinor, and the U.S. company H2 Storage Partners have already signed up to pilot projects. Shell’s Gulf Coast project will test a 2 million‑cubic‑metre cavern, while Equinor plans to retrofit a North Sea field to hold 1.5 million cubic metres. Early estimates suggest that each cubic metre of underground storage could reduce the cost of hydrogen by up to 30 %, bringing it closer to competing with natural gas on a price‑per‑energy basis. Technical challenges remain, including the need for corrosion‑resistant liners and monitoring systems to detect leaks, but the first safety certifications are expected by mid‑2025.

If successful, the projects could trigger a wave of investment in hydrogen pipelines and refueling stations, creating jobs and reducing fossil‑fuel dependence. Governments are already drafting permitting frameworks to speed up approvals. In the U.S., the DOE plans to issue a call for proposals later this year, while the EU will hold a stakeholder summit in June to align national regulations. The