Mitsubishi Gas Chemical is investing in Gold Hydrogen Limited, an Australian startup attempting to commercialize natural hydrogen extraction from underground deposits in South Australia. The Japanese chemicals manufacturer cited the move as part of its carbon neutrality strategy under its “Grow UP 2026” management plan.
Gold Hydrogen has drilled only two exploration wells at its Ramsay Project on the Yorke Peninsula since late 2023, detecting hydrogen at purities reaching 95.8% and helium at 17.5%. The startup plans to use MGC’s investment for additional drilling and pilot facility design starting in the fourth quarter of 2025.
The investment reflects growing interest in natural hydrogen, which occurs underground without requiring energy-intensive production methods. However, the broader hydrogen sector faces significant commercial hurdles, including high costs, infrastructure limitations, and uncertain demand. Most hydrogen projects globally remain in pre-commercial phases with limited electrolyzer capacity, typically below 50 megawatts.
MGC’s backing comes as analysts estimate global hydrogen subsidies would need to reach $1.3 trillion to make current project announcements viable without carbon pricing. The company hasn’t disclosed the investment amount or timeline for potential commercialization.
While MGC seeks to diversify into clean energy, Gold Hydrogen’s technology remains untested at commercial scale, with no clear path to profitability established.
