Middle East emerges as a key player in the rapid evolution of natural hydrogen industry

Natural hydrogen is shifting from being just a niche curiosity in geology to becoming a serious point of discussion for energy lawyers, investors, and policymakers across the Middle East. In the latest episode of Greenberg Traurig’s E2 Energy Law Podcast, titled Energy Horizons, host Nikki Wise and Bill Garner, who’s the co-chair of the firm’s global energy practice, describe the sector as one of the most closely watched energy innovations of 2026.

The talk kicks off with France, where Française de l’Énergie has drilled what’s been called the deepest well in the world targeted specifically at natural hydrogen. Located in Lorraine, the well reached around 3,500 metres below the surface, beneath old coal mines. That milestone is pretty significant because it shows that the quest for geologic hydrogen is no longer just in the realm of theory. It’s now advancing into deeper, more costly, and technically complex exploration.

After France, the episode shifts its focus to the Middle East, where the geology might actually give the region a bit of an edge. Bill Garner highlights serpentinised ultramafic rocks and ophiolitic formations as key elements in the natural hydrogen story. These ancient geological systems can support a process called serpentinisation, which potentially produces hydrogen underground. For Gulf countries and the wider region, that means their subsurface geology could soon be just as strategic as their surface policies.

Oman seems to be leading the charge early on. The podcast mentions that visible hydrogen seepage has already been observed there, something quite rare in frontier resource plays, since it suggests that the resource could actually be found at a larger scale. HyTerra has moved further, signing an 18-month exclusive deal with ARA Natural Resources to look into the natural hydrogen possibilities within Oman’s Semail Ophiolite. Various sources like ChemAnalyst, Gasworld, and Drilling for Hydrogen report that the goal here is to assess technical potential, regulatory hurdles, and the commercial feasibility, while also mapping out permitting procedures and engaging with local stakeholders.

What makes Oman stand out is this intriguing mix of geology and policy, according to Garner. The country’s petroleum legislation is relatively flexible, which gives it a bit of an early regulatory edge. The importance of that can’t be overstated, since natural hydrogen doesn’t quite fit neatly into existing categories. It’s not fully oil and gas, not mining, and it’s not covered by a mature global rulebook either. In places like Oman, where the legal framework is more adaptable, projects are more likely to progress faster than in other regions.

Interest in natural hydrogen isn’t just confined to a single company or basin anymore. The podcast talks about a US Department of Energy-backed project with GeoPower, and a memorandum of understanding between SOHAR Port and Freezone and the Swiss firm HYNAT. All these moves tell us that natural hydrogen is beginning to attract infrastructure development and institutional attention, sectors traditionally reserved for more established energy sources.

Saudi Arabia is also getting involved, though still mostly in the exploratory phase. The episode notes that Aramco, the giant state energy company, has started some pilot studies. That fits with the broader Saudi approach, test the science first, then decide whether to scale up, based on geology, economics, and strategic fit. In a region that often makes headlines with mega-projects, natural hydrogen remains very much in the early laboratory and pilot stages. Still, having the support of the state at this stage is a meaningful indicator that major national players are paying close attention.

Meanwhile, the UAE is building its own footprint. The podcast mentions that Abu Dhabi has established a research institute dedicated to natural hydrogen, signalling that the country isn’t just interested in the commercial side but also values scientific capacity. For the UAE, this is consistent with its broader climate tech strategy: invest in knowledge, develop institutional expertise, and keep flexible options open across multiple low-carbon pathways.

Sharjah has also entered the story. According to the podcast, Irish company Decahydran has confirmed a natural hydrogen well there, and formed partnerships with Weatherford International, Sharjah National Oil Company, and Siemens Energy. If those partnerships develop well, they could help connect geological potential with engineering and project implementation, something that’s often the missing link in frontier energy sectors.

On the legal side, the implications are pretty substantial. Wise and Garner highlight that the sector is still very much in its infancy, with regulatory frameworks that are still being shaped. Environmental assessment procedures , well, they’re not yet standardised everywhere, and commercial contracts are being drafted without a properly settled market structure to work within. Even jurisdictional questions, should natural hydrogen be treated more like a mineral, a subsurface resource, or perhaps akin to petroleum, are still unresolved in many regions.

That kind of uncertainty involves risks, sure, but it also offers opportunities. Law firms, technical advisors, and investors who are able to navigate these grey areas could have a head start. Governments willing to act quickly on licensing, data sharing, and cross-border investment could also gain an advantage. Given that many regional policies on energy transition are still evolving in tandem with legacy hydrocarbons, natural hydrogen offers a rare chance to help shape a new kind of energy future from the ground up.

Of course, the road to commercialisation isn’t short or simple. The episode isn’t suggesting that natural hydrogen will replace existing energy sources anytime soon. It’s more a realistic, cautious view of a resource that might take years just to prove, then even more to finance, and yet longer to bring to market at scale. Geology, infrastructure needs, and geopolitics will all influence how quickly or slowly that process unfolds.

That said, the Middle East does have some advantages. It’s got the subsurface expertise, deep capital markets, well-established energy operators, and sometimes a regulatory climate that seems open to taking risks. None of these assets guarantee success, obviously. But they do suggest that it’s unlikely the region will stay on the sidelines for too long.

For those involved in climate technology developments in the UAE, the message is clear. Even though natural hydrogen remains somewhat of a frontier idea, the legal, scientific, and commercial steps needed to develop it are already underway. The real test now is whether early promise can survive the realities of drilling, regulation, and establishing a viable project economics.