#1OFFICIAL Natural hydrogen exploration in South Australia Elinor Alexander Director Geoscience and Exploration Branch Energy Resources Division Department for Energy & Mining SOUTH AUSTRALIA Government of South Australia Department for Energy and Mining 00000#2OFFICIAL Why South Australia? Zgonnik (2020) First drew attention to natural hydrogen indications in Australia N V. Zgonnik A Amadeus basin Perth Ο Adelaide Esperance 0 500 1000 km 20 km Earth-Science Reviews 203 (2020) 103140 1. DEM's online records revealed significant hydrogen contents from Government analyses of gas samples taken from three historic drillholes (Zgonnik 2020): 1915 Robe 1 (25.4% hydrogen) - 1921 - American Beach Oil 1 (64.4-80% hydrogen) 1931 - Ramsay Oil Bore 1 (51.3-84% hydrogen) 2. Salt lakes on Yorke Peninsula and Kangaroo Island were postulated to be ‘fairy circles' caused by hydrogen seeps (e.g. Moretti et al., 2021). 3. Natural hydrogen exploration become possible in in SA in February 2021 when changes to the Petroleum and Geothermal Energy Regulations 2013 added hydrogen as a 'regulated substance'. joining petroleum, CO2, H2S, He, N and substances produced with petroleum. Moretti et al. (March 2021) drew attention to potential 'fairy circles' - Figure 5. Location of the areas with many circular depressions in Australia (red areas). The yel- low stars are the location of the wells that found H2, the yellow circles highlight the areas where depressions that look like fairy circles can be observed and where statistic has been done in this study.#310 S- 20 S- OFFICIAL Potential natural hydrogen sources 110°E 120 E 130°E 140°E 30'S- Western Australian Craton Gawler Craton 40 S- 110°E Southern Margin Curnamona Province OWells with hydrogen shows 120°E 130 E Intracratonic basins 150°E 1 Tasman Fold Belt (late Neoprot-Mesozoic) System 140°E 150°E Image - OZSEEBASE 2021 (Geognostics) https://www.geognostics.com/oz-seebase-2021 -10°S -20°S -30°S -40°S Hydrogen indications in drillholes. Ancient basement complexes which contain iron and/or uranium rich rocks e.g. Archaean greenstone and Precambrian basement terranes, 'hot' granites' - may generate hydrogen via: o radiolytic processes (radioactive decay breaks bonds in water) & o oxidation of Fe2+ rich minerals (serpentinization). fractured and seismically active source areas - deep-seated faults can both channel migrating hydrogen up from deep sources to surface and introduce water downward for further chemical reaction with exposed iron-rich rocks. Sedimentary cover may reservoir and trap migrating hydrogen particularly if aquifer systems and/or seal rocks like salt are present (see Bradshaw et al. 2023). Thermogenic decomposition of organic matter (e.g. over-mature source rocks). Surficial hydrogen seeps? Seeps can be blind or coincident with visible sub-circular topographic depressions on the metre to kilometre scale ('fairy circles'). With input from Dr Betina Bendall 2022 https://www.energymining.sa.gov.au/industry/geologica survey/mesa-journal/previous-feature-articles/current-perspectives-on-natural-hydrogen-a-synopsis energymining.sa.gov.au#4OFFICIAL Uranium and iron occurrences and mines in SA Radiogenic granites and iron-rich basement are potential natural hydrogen sources Uranium occurrences and mines MUSCRAVE PROVINCE Maria Coober Pedy FOUR MILE OLYMPIC DAM Gawler Craton (IOGCU Olympic Province) Uranium contained resource (tonne) Less than 1000 1000-9999 10 000 24 999 25 000 999 999 Greater than 1 000 000 Current May 2022 8 • * MAJOR URANIUM MINES (approved) Developing uranium projects Uranium occurrences Tenements under exploration for uranium 200 km Highway Railway Samphire. BEVERLEY Curnamona Province) Goulds Dam HONEYMOON. Crocker Well ADELAIDE RIFT COMPLEX Junction Dam Adelaide MURRAY BASIN Mount Gambier Surface heat flow Oodnadatta Cocher Pedy Marree Gook Tarcoola Meatflow 30- 10- 100 200 Kilometres Woomera Ceduna Port Augusta streaky Bay Kimba סיד Heatflow data point Town 10- Rood 100- Railway 110- Heatflow contour (mW/m²) 120- Transmission line 129 Petroleum pipeline Leigh Creek Hawker Moomba 06 001 19 105 100 05 es Innamincki Iron ore occurrences and mines MUSGRAVE PROVINCE Marla The Coober Pedy Snacfell CAIRN HILL Hawks PECULIAR KNOB Nest BUZZARD CAWLER CRATON Wilcherry Hill CURNAMONA PROVINCE ADELAIDE RIFT COMPLEX Whyalla Steelworks MIDDLEBACK RANGE Grants Maldorky Ory Muster Flats Dam Razorback Port Pine Burra CENTRAL EYRE IRON PROJECT Cleve Kadina Renntark Nunootpa Iron ore contained resource (M. tonne) Less than 50 Bungalow WILGERUP Port Lincoln ADELAIDE Murray Bridge Kingscote 50-99 100-249 Fusion Adelaide MURRAY BASIN 250-499 Contouring produced using minimum curvature-bicubic Interpolation on historical uncorrected heat flow data. Data points represent calculated heat flow measurements from Individual drill holes. Product of Energy Recourse Division, Department for Energy and Mining 2023. 30 January 2023 Mctor Harbor Kelth Kingston Mount Gambler Greater than 500 Current May 2022 MAJOR IRON ORE MINES (approved) Developing iron ore projects Iron ore occurrences Tenements under exploration for iron ore 200 k MAJOR STEELWORKS Highway Railway Mount Gambier#5OFFICIAL Prospectivity - screening basement provinces Musgrave Block OFFICER BASIN Godned atin FROMANGA BASIN Pennew * Province Curnamona Hydrogen play elements Coompana Musgrave Gawler & Mt Painter inlier Kanmantoo Fold Belt Gabbros, mafics, ultramafic COOPER BASIN Ralgaal 1 intrusives Memba Iron-rich granitoid/ intrusives Uranium-rich rocks IOCGU* Coonanna Bare MT PAINTER INLIER aleigh Creek STUART SHELF ARROWIE BASIN Gawler Craton Coompana Block (IOGCU Olympic Province) CURNNONA PROVINCE ADELAIDE RIFT COMPLEX Part Augus Curnamona Province (Uranium rich rocks) Banded iron formations Ferruginous duricrusts Structural complexity/deep active faults Hydrogen shows BUFF 100 km Selected wells with hydrogren anomalies Dry hole Gas shows Gas well Water well Ramsay Cll Bere 1 ADELAIDE ■ STANSBURY DASIN Kanmantoo Fold Belt American Beach Oil 1 KANMAN 100 PROVINCE Hette 1 OTWAY BASIN Menember Ramsay Oil Bore. Fairy circles on Yorke Peninsula? American Beach Oil Bore 1 Fairy circles on KI? * Iron Ore Copper Gold Uranium deposits Bendall 2022 https://www.energymining.sa.gov.au/industry/geological-survey/mesa- journal/previous-feature-articles/current-perspectives-on-natural-hydrogen-a- synopsis#6ERINGA TROUCH ARCKARINGA OFFICER BASIN BASIN O DENMAN BASIN BIGHT PEDIRKA BASIN ⚫ SIMPSON BASIN . Olympic Dam EROMANGA BASIN WARBURTON BASIN D MOON Coonanna Bore Four Mile X/Boverlay ARROWIE BASIN * Honeymoon ADELAIDE RIFT COMPLEX Port Bonython RENMARK TROUGH POLDA BASIN STANSBURY BASIN BASIN Ramsay Oil Bore 1 American Beach Oil 1 Mesozoic Permo-Carboniferous Neoprot- E Palaeozoic Petroleum wells Wells with hydrogen anomalies Dry hole with oil shows 100 km Gas well with oil shows Oil and gas well Gas shows Gas well Oil and gas shows Oil well TROUBRIDGE BASIN Robe 1 OFFICIAL - Prospectivity – screening basins Hydrogen play elements Basin Neoprot Adelaide Rift Complex/ Arrowie Basin Mafic intrusives/extrusives (source and seal) Iron stones Salt/anhydrite, aquifers (seal) and potential reservoirs Deep Faults Over-mature source rocks Hydrogen shows Officer Basin Stansbury Basin Cooper/ Eromangal Otway Basin Warburton basins Ramsay Oil Bore 1. Fairy circles? Coonana 1, Ralgnal 1 etc. Robe 1 (mantle derived CO2 in Caroline 1 and Nangwarry 1) Nangwarry 1 Katnook OTWAY BASIN *Caroline 1 CO₂ wells Processing plant Gas pipeline Liquids pipeline Gas and liquids pipeline Bendall 2022 https://www.energymining.sa.gov.au/industry/geological- survey/mesa-journal/previous-feature-articles/current-perspectives-on-natural- hydrogen-a-synopsis#70 100 200 km Morla Ceduna Port Augusta Port Bonython Port Pirie Current February 2023 Petroleum Competitive Tender Region Petroleum tenements Onshore exploration licence (PEL) Offshore exploration licence (EPP) Exploration licence application (PELA) Production licence (PPL) Retention licence (PRL) Gas storage tenements Exploration licence (GSEL) Exploration licence application (GSELA) Retention licence (GSRL) Under application (GSRLA) Petroleum pipeline licence Gas Gas and liquids Liquids Port Lincoln No petroleum exploration access - National Parks and Reserves No petroleum exploration access - former test site WPA Continuous use zono ADELAIDE Moomba FICIAL Licensing Petroleum Exploration Licence (PEL) is required to explore for natural hydrogen. Three 5 year terms, 1/3 relinquishment at end of each term. Discoveries are held by Petroleum Production Licences. To apply for a PEL: - - 。 Pay the fee of $5,174 (~£2,726). 。 5 year work program - with at least 1 well. o Evidence of technical & financial capacity. • Competitive tender regions - vacant acreage is only available via DEM releases which are based on work program bidding (5 year exploration program). Petroleum & Geothermal Energy Act 2000 - single window into government for petroleum and natural hydrogen E&P. includes underground storage and pipeline transport for all 'colours' of hydrogen. Bill is being tabled in Parliament this year. Natural (gold, white) Green hydrogen 02 hydrogen Natural hydrogen exploration H2 Underground storage Mount Gambier Pipeline transport ΗΣ H2 green electricity water hydrogen HZ H2 Underground storage Pipeline transport#8485 499 117 Ceduna 118 119 666 Coober Pedy 574 Oodnadatta 124 121 160 290 675 289 288 512 3311 605 PELA 752 122 PELA 753 586 PELA 689 123 PELA 752 PELA 752 511 Tarcoola 609 PELA 750 PELA 751 673 561 PELA 689 Ralgnal 1 639 679 641 515 560 96 640 Moomba 몽 607 582 643 Coonanna Bore 581 PELA 716 PELA 690 . Woomera PELA 751 647 577 PELA 689 650 PELA 717 Leigh Creek 826 PELA 714 PELA PELA 748 713 PELA 698 PELA 712 PELA 715 PELA 754 Port Augusta PELA 705 PELA 749 PELA 749 PELA 709 PELA 690 PELA 708 PELA 697 PELA 725 153 The Kimba PELA 725 Whyalla Port Pirie 126 649- PEL 691 PELA 725 Moonta PELA 688 PELA 718 827 PELA 710 PELA 704 PELA 707 PELA 711 PELA 703 PELA 706 PELA 725 RELA 71,3 Port Lincoln Ramsay Oil Bore 1 PEL 687 ADELAIDE Edithburgh PELA 688 Renmark PELA 702 PELA 701 Kingscote PELA 700 PEL 687 American Beach Oil 1 Current 17 June 2022 Recent licencees Gold Hydrogen Pty Ltd H2EX Pty Ltd Recent applicants 2H Resources Pty Ltd Byrock Resources Pty Ltd Cryptid Clean Energy Pty Ltd Go Exploration Pty Ltd H2EX Pty Ltd Newgold Corporation Pty Ltd White Hydrogen Australia Pty Ltd 0 50 100 150 km PELA 699 Selected wells with hydrogen anomalies → Dry hole * Gas shows *Gas well Water well No petroleum exploration access - National Parks and Reserves Robe Robe 1 494 680 Mount Gambier ERD 205590-011 628 NSW OFFICIAL Hydrogen exploration status • 40 'over the counter' applications have been lodged for PELS targeting natural hydrogen by 7 companies since February 2021. • · • Applications are assessed by DEM-ERD and if valid, licences are then offered to the applicants. In areas where Native Title may exist, a Native Title Agreement is required before grant. The first PEL was granted in July 2021 to Gold Hydrogen Pty Ltd - shown in yellow. Second PEL was granted to H2EX in June 2022- shown in green. • Grant McMurtie (2H Resources) spoke yesterday about their plans. Yorke Peninsula salt lake, Sundown Rd.#9OFFICIAL Gas Storage Licencing Marta Hydrogen hub Constructed Under development Gas storage tenements Gas storage exploration licence application (GSELA) Gas storage exploration licence (GSEL) Gas storage licence (GSL) Gas storage retention licence (GSRL) Petroleum tenements with gas storage rights Petroleum production licence Petroleum retention licence Petroleum exploration licence Petroleum pipeline Gas Oil-liquids Gas and liquids Seebar Prody Oodnadatta Olympic Dam c Andamookst Tarcoxia Port Lincoln Woomera Marree Port Augusta Leigh Creek PORT PONYTHON Eyre Peninsula Gateway Project Port Bonython Whvala Port Whyalla Pirie Crystal Brack Energy Park Cape Hardy Sheep Hill Port Lincoln Lucky Bay Wallaroo Port Pirle Ardrossan Port Adelaide Kleins Point Port Giles ADELAIDE Tonsley Kingscote Robe- Mount Gambier Renmark The following licences provide the rights to store regulated substances including hydrogen: 。 Gas Storage Exploration licences (up to 2,500km²) - exploration and operations to establish the nature, extent and feasibility of underground storage of regulated substances. • Gas Storage Licences (up to 1,000km²) - when a storage site is proven, the licensee is entitled to a Gas Storage Licence. Some hydrogen explorers have applied for GSELs to acquire the right to explore for hydrogen storage for their projects. Pipeline Licence (PL) Pipeline licences (PLS) allow construction and operation of a transmission pipeline for carrying a regulated substance.#10OFFICIAL C Gold Gold Hydrogen's Ramsay Project location Hydrogen N Zoomed in map Gold Hydrogen is planning to drill a dedicated hydrogen exploration well on the Yorke Peninsula in October 2023. First well will twin the historical Ramsay Oil Bore 1. Airborne gravity-magnetic survey flown in March-April 2023. Non-invasive soil gas surveys carried out by Gold Hydrogen and CSIRO in April 2023. PEL687 0 km 10 km 20 km 30 km 40 km LEGEND: Petroleum wells Ramsay Oil Bore 1 (updated location) Relevant onshore 2D seismic lines Relevant offshore 2D seismic lines PEL687 permit outline N SYC 101 Minlaton Northwest 1 Minlaton 2. Ramsay Oil Bore 1 (updated) Y82A-A1 Ramsay Oil MINLATON TOWN Bore 1 Y82A-A3 Minlaton 1 Stansbury West 1 0.0 km 2.5 km 5.0 km 7.5 km 10.0 km https://www.goldhydrogen.com.au/ramsay-project/ Slide provided by Gold Hydrogen Stansbury Town 1#11MIL 400 009 800 1,400 1,200 1,000 009'1 2, 2,095 1,800 2,200 Minlaton Northwest 1 558m away from 2D line Inflammable gas reported Sample depth (m) Formation Gas Composition (%) Y82A-A1 240.8 262.1 507.8 Parara Parara Parara Lst Lst Lst Carbon dioxide 0.2 0.8 Oxygen 0 2.4 1.2 Ethlyene etc. 0 0 Carbon monoxide 0 0 Hydrogen 76 64.4 84 Methane 7.5 7 0 Nitrogen (by difference) 16.3 25.4 14.8 W 0 2 3 4 km Top Cambrian Parara Lst Kulpara Fm Basement Basement 2 Basement 3 Y82-A2 Ramsay Oil Bore 1 updated 183m away from 2D line H2 Ⓒ Hydrogen First well will twin the historical Ramsay Oil Bore 1 that recorded hydrogen in Early Cambrian carbonates (Parara Limestone). • Well is planned to tag the granite basement, which is believed to be the source of the hydrogen. • Full geological logs and samples will be taken. • Second well planned for ~500m west of the first well and will target a larger granite section. E https://www.goldhydrogen.com.au/ramsay-project/Slide provided by Gold Hydrogen 00000#12Assets H2EX's total acreage position is approximately the size of Croatia H2EX Awarded an Exploration License in June 2022 Assets Located in South Australia PEL 691 totals 6,000km² 1. Petroleum and Geothermal Energy Act 2000 S.115 MEMORANDUM PETROLEUM EXPLORATION LICENCE PEL 691 License: 691 1st ranked Applications: 689 majority of 690 717 718, 725 "half of 754 2nd ranked Applications: part of 690 714 715 716 Petroleum Exploration Licence PEL 601 granted on 16 June 2022 is hereby entered on the public register. "half of 754 Green hydrogen projects Interests in the licence are: H2EX Pty Ltd 100% NICK PANAGOPOULOS A/Executive Director Energy Resources Division Department for Energy and Mining Delegate of the Minister for Energy and Mining Date: 16 June 2022 File: MER-2021/0287 1st ranked applications totalling ~52,000km²; PELA 689, 690, 717, 718, 725, 754 Right To Negotiate (RTN) Native Title negotiation process initiated for 689 & 725 2nd ranked applications totalling ~35,000km2; PELA 754, 714, 715, 716 https://h2ex.com.au/ Slides provided by H2EX Reimagining Energy -32 300.000 Gawler Craton 135-00.000 137 300.000 140 0 0.000 754 725 0 100 200 km 691 689 Curnarhona Province 716 714 717 718 715 690 Historical oil bores detected 50-85% hydrogen purity at depths of 200-500m Adelaide SA Capital City H2EX#13• • PEL 691 Exploration Activities H2EX is collaborating with top-tier Australian research institutions to crack the code on finding natural hydrogen with intent Permit Year 1: 2 x CSIRO Agreements The Eyre Peninsula is data-rich, mining activity commenced some 100 years ago H2EX and CSIRO Research Agreement, desktop study completed Dec 2022 H2EX and CSIRO Fieldwork Agreement, gas soil sampling completed May 2023. Positive detections of hydrogen and methane encountered in the field. Permit Year 2-3: Federal Grant Fund Approved Accelerating The Exploration and Extraction of Renewable Natural Hydrogen Co-operative Research Council Project (CRC-P) Round 14 Success! Public announcement 30 June 2023: business.gov.au/grants-and-programs CSIRO team in the field on PEL 691 Apr-May 2023 Reimagining Energy • H2EX Australian National University THE UNIVERSITY of ADELAIDE R BLACK & VEATCH The Project will unlock important first-mover benefits for Australia within an emerging sector globally, while retaining Australia's competitive advantage and highly regarded technical and engineering expertise. Total project cost A$2.1m (grant totals A$863k) https://h2ex.com.au/ Slides provided by H2EX H2EX#14Conclusions OFFICIAL • While it's very early days, high level screening reveals that South Australia has prospective geology and evidence of natural hydrogen occurrences. • ● . Regulatory, licensing and investment frameworks are in place, enabling grant of Australia's first exploration licences targeting natural hydrogen. Explorers are also able to apply for licences to store hydrogen underground and licences for the transmission of hydrogen in pipelines. Upcoming company exploration activity in SA will test a diversity of natural hydrogen plays. • It is expected that the new Hydrogen and Renewable Energy Act and amendments to the Petroleum and Geothermal Energy Act 2000 will be in place by the end of 2023. • Watch this space! Disclaimer The information contained in this presentation has been compiled by the Department for Energy and Mining (DEM) and originates from a variety of sources. Although all reasonable care has been taken in the preparation and compilation of the information, it has been provided in good faith for general information only and does not purport to be professional advice. No warranty, express or implied, is given as to the completeness, correctness, accuracy, reliability or currency of the materials. DEM and the Crown in the right of the State of South Australia does not accept responsibility for and will not be held liable to any recipient of the information for any loss of damage however caused (including negligence) which may be directly or indirectly suffered as a consequence of use of these materials. DEM reserves the right to update, an end or supplement the information from time to time at its discretion.