QIMC Accelerates U.S. Expansion in Natural Hydrogen with Creation of Orvian Special Purpose Vehicle

By Peter Kennedy

Ground-breaking studies by leading experts say 6.2 trillion tonnes of natural hydrogen gas lies buried in rocks and underground reservoirs located beneath the earth’s surface.

Experts say that just a fraction of that amount has the potential to break our dependence on fossil fuels for 1,000 years. Industry data suggests that natural hydrogen can be extracted cleanly and sold for under US$1 per kilogram while leaving no carbon polluting footprint.

It helps to explain why investment in hydrogen projects is forecast to reach US$407.34 billion by 2050 (Source IEA (2021), Global Hydrogen Review. Hydrogen has the potential to be the fuel of the future because it is light, storable, energy-dense and can be developed to provide clean energy.

It also helps to explain the growing investor interest in white hydrogen, a naturally occurring hydrogen that accumulates naturally underground, generated by geological processes. It can be produced using proven engineering practices with minimal environmental impacts and has a small footprint compared to other exploration activities. As a replacement for carbon-based fuels, naturally occurring hydrogen offers significant cost and emissions advantages relative to other sources of hydrogen production.

Australia’s Gold Hydrogen Ltd. [GHY-ASX] was one of the first companies in the world to prove that high levels of both natural hydrogen and helium exist underground. This has been achieved at its Ramsay Project on the Yorke Peninsula in South Australia, a 100% owned exploration project covering 75,000 square kilometres of permitted tenement.

The two sites drilled so far were identified after South Australian State Department geologists’ reports were uncovered from the 1920s and 1930s. This showed natural hydrogen, which they had no use for back then, had been found while exploring for oil. More than a century later, the company has looked at those results with a new understanding that naturally occurring hydrogen could be the key to unlocking a revolutionary low-cost fuel source with huge implications for net zero carbon goals. In 2023/24, the company reported finds of natural hydrogen up to 95.8% purity and helium up to 36.9% purity. In a major boost to the company, traces of the extremely rare and valuable variant Helium3 were found in the latest samples. Data from the two test sites has been matched with seismic and other survey results to identify up to five new sites that will be drilled in 2025. Successful results will lead to completion of a pilot project with the aim of commercializing both gases.

Meanwhile, one of the world’s richest men – Bill Gates – is continuing to back the hunt for natural hydrogen with another significant investment in a start-up.  Gates’ Breathrough Energy Ventures has joined a US$3.4 million fundraise in French company Mantle8, one of a cohort of companies racing to find natural hydrogen. Interest in the sector is ticking up. In January, natural hydrogen startup Snowfox, a spinout from the University of Oxford, said it had raised an undisclosed sum from mining conglomerate Rio Tinto Plc [RIO-NYSE], and oil and gas major BP. In the U.S., Koloma, raised US$245 million in 2023 – the industry’s largest round to date – including backing from Gates’ Breakthrough Energy Ventures.

Quebec Innovative Materials Corp. [QIMC-CSE, QIMCF-OTC, 7FJ-Frankfurt] is advancing its ambitious U.S. natural hydrogen strategy through the creation of Orvian Natural Resources I LLC, a special purpose vehicle dedicated to developing clean, naturally occurring hydrogen projects across the United States. In partnership with Swiss company Black Tree Energy Group [BTEG], the initiative leverages QIMC’s proprietary expertise, proven exploration methodologies, and successful track record in identifying and securing natural hydrogen reserves in Ontario, Quebec, and Nova Scotia.

Natural hydrogen is a clean and cost-effective alternative to fossil fuels that has increasingly attracted attention from investors due to its potential to significantly lower global carbon emissions. Recent industry data highlights the economic viability of naturally occurring hydrogen, which can be produced at under US\$1 per kilogram, offering substantial competitive advantages over conventional hydrogen production methods.

The aim is to utilize the global reach and industry connections of BTEG which is involved in multi-billion-dollar projects (mostly natural gas) in the energy space in Croatia, Albania and the United States. As a joint equity partner with QIMC in Orvian Natural Resources, BTEG would aim to attract global energy companies who are willing to fund hydrogen exploration in return for a share of future revenue.

Following the announcement of the partnership, investor confidence was evident, with QIMC’s shares rising notably from 14 cents to 18 cents. The company continues to build momentum, underpinned by its ongoing 5,000-metre drilling campaign in St.-Bruno-de-Guigues, Quebec, strategically designed to characterize key geological structures critical to natural hydrogen accumulation and migration.

The U.S. expansion plan comes after QIMC has already secured the rights to hydrogen claims in Quebec, Ontario and Nova Scotia based on the advice of the Institut National de la Recherche Scientifique (INRS) following years of research by Professor Richer-LaFleche, Scientific Head of Applied GeoScience Laboratory at INRS.

Professor Richer-LaFleche indicated to QIMC, which areas his research model pointed to, based on research papers that had come from Australia where he noticed a lot of similarities in terms of rock type and fault systems.

There are three large main claim groups in Quebec that match the criteria [established by Professor Richer-LaFleche’s research] and QIMC has staked them all. They include the Ville Marie Hydrogen Project, the Lac St Jean Hydrogen Project, and the Gaspe Bay Hydrogen Project.

The company said the Phase 1 program will consist of strategically planned shallow 30 to 35 degrees stratigraphic drilling reaching vertical depths of 500 to 800 metres. This approach aims to maximize geological insights by extensively sampling and documenting local sedimentary rock formations. Key objectives of the drilling include thoroughly characterizing geological features, investigating the local faulting and fracturing systems that lack surface visibility due to a thick layer of overburden, and critically assess permeability and porosity within fractured geological formations. The company said these fractures are considered essential conduits for the advective migration and accumulation of natural clean hydrogen.

QIMC CEO John Karagiannidis highlighted the importance of this strategic milestone: “Our proprietary hydrogen model and unique exploration methodologies have demonstrated considerable success. Partnering and utilizing collective resources positions QIMC to rapidly scale and replicate our exploration achievements in the highly promising U.S. market.”