Michigan is eyeing its potential underground energy reserves with a new $7.5 million grant to kick-start exploration, research and development of geologic hydrogen.

This potential energy source is found and stored in rocks underground similar to petroleum reserves.

A U.S. Geological Survey report ranked Michigan as having the best position in the nation for having geological hydrogen capabilities. Other likely areas of the country were parts of Kansas, northern Texas, southern Oklahoma, western North Dakota and eastern Montana as well as the Four Corners area of Arizona, Utah, Colorado, and New Mexico.

USGS noted that the report, issued last year, marked the first public U.S. prospectivity map indicating geologic hydrogen accumulations to encourage research and exploration.

Called “Prospectivity Mapping for Geologic Hydrogen,” the report noted that although geologic hydrogen remains under exploration, it could become a new, key energy source that is low in carbon.

“Often referred to as ‘white’ or ‘gold’ hydrogen, this gas occurs naturally in the Earth’s subsurface, similar to petroleum resources. However, unlike petroleum, which releases carbon dioxide when burned, burning hydrogen only produces water as a byproduct,” the study noted. “Exploration for geologic hydrogen remains in an early stage and discoveries of high concentrations of subsurface hydrogen are still relatively rare.”

Michigan’s New Focus on Geological Hydrogen

This year, Michigan officials have been actively determining how the state could capitalize on developing geological hydrogen.

Funding for the grant is being made available through the “Make It in Michigan Competitiveness Fund” in an announcement by the Michigan Infrastructure Office.

When the grant was recently announced , Kevin Mehren, director of the Michigan Infrastructure Office, emphasized the state could be able to tap into “ one of the most promising geologic hydrogen systems in the country. The next step is proving what is there and whether it can be safely and economically recovered. This investment puts Michigan in a position to answer those questions.”

Michigan has devoted a web page to geologic hydrogen that explains initial state grants will be matched by federal funding. Plans to explore the state’s potential geologic hydrogen capabilities will be identified this year and with more details revealed in early 2027.

In January, Gov. Gretchen Whitmer issued Executive Directive 2026-1 to create the Michigan Geologic Hydrogen Exploration and Preparedness Initiative.

Announcing the order on Jan. 15, she noted , “The geologic hydrogen in the Midcontinent Rift that lies beneath Michigan could, if commercially viable, generate tens of millions of dollars annually in direct state revenue, and drive an even larger indirect fiscal impact that benefits our families and communities. At the same time, Michigan could see billions of dollars in new economic activity by tapping into a fraction of the U.S. hydrogen economy, which is projected to reach tens of billions of dollars in the coming years.”

The governor’s order has rallied four state agencies to complete and deliver geologic hydrogen readiness reports on such subjects as

  • Permitting, well safety and underground storage
  • Potential economic impacts
  • Leasing hydrogen on state-owned lands
  • Incorporating hydrogen into energy system pipelines and safety standards.

Other States May Follow Michigan’s Lead

While Michigan’s activities to determine if its future will include geologic hydrogen energy, other states with possible reserves are likely to follow its lead given potential economic benefits.