New Strategic Asset Class: Hydrogen Infrastructure Investment Accelerates in Europe

• Air Liquide’s €250M+ hydrogen infrastructure investments in the EU mark a structural shift from policy intent to industrial execution, reinforcing hydrogen’s role in decarbonisation and semiconductor manufacturing.
• Green hydrogen deployment is accelerating in tandem with industrial policy incentives, reinforcing energy independence and reshaping natural gas and helium demand profiles across critical sectors.
• Georgina Energy’s helium-hydrogen strategy in Australia is aligned with this macro shift, offering early-stage exposure to constrained helium supply and emerging hydrogen offtake markets.
• Global helium supply remains structurally short, and pricing trends show continued divergence from broader commodity inflation patterns, creating scarcity-driven investment optionality.
• Hydrogen’s transition from subsidy-backed pilots to asset-scale CAPEX signals a maturing infrastructure play with direct implications for resource developers, midstream investors, and tech-focused commodity allocations.

From Decarbonisation Mandates to Infrastructure Delivery

Global hydrogen demand is projected to increase threefold by 2035 according to the International Energy Agency, marking a decisive shift from policy frameworks to capital deployment across critical infrastructure projects. The transition from decarbonisation mandates such as REPowerEU (a European Commission plan to end reliance on Russian fossil fuels before 2030 in response to the 2022 Russian invasion of Ukraine) and the US Inflation Reduction Act to substantial capex commitments demonstrates the acceleration into the buildout phase of hydrogen infrastructure.

Air Liquide's recent investments in the Netherlands and Germany, including the ELYgator electrolyzer facility, represent a fundamental change in how industrial gas companies approach hydrogen supply chains. These are not pilot programs but full-scale infrastructure investments designed to meet the European Union's target of 10 million tonnes of renewable hydrogen production by 2030. The scale and timing of these commitments reflect institutional confidence that hydrogen demand has moved beyond regulatory aspiration into commercial reality.

Electrolyzer projects are now entering commercial scale across Europe, with manufacturers securing long-term offtake agreements that provide revenue visibility for project financing. This infrastructure development creates downstream demand for the industrial gases required in both production and purification processes, particularly high-purity helium and hydrogen feedstock.

Semiconductor Growth as a Parallel Driver of Gas Demand

Europe's semiconductor sovereignty initiatives, paralleling the CHIPS Act framework, are simultaneously driving demand for high-purity industrial gases essential to fabrication processes. Semiconductor manufacturing requires consistent, scalable supply of gases including helium for cooling and hydrogen for chemical vapor deposition. This dual exposure opportunity, hydrogen for energy transition and helium for technology infrastructure, creates portfolio diversification for investors seeking exposure to both macro themes through single resource assets.

The capital intensity of electrolyzer projects, often exceeding €1 billion per facility, establishes a multi-year demand profile that supports strategic resource planning for upstream suppliers. Semiconductor fabrication facilities demonstrate similar capital requirements and operational lifespans, creating parallel demand streams that reinforce the strategic importance of reliable gas supply chains.

Systemic Risk & Asset Repricing Across Cycles

Geopolitics, Gas Supply Volatility, & the Hydrogen Hedge

The July 2025 Middle East shipping disruptions highlighted the vulnerability of global energy supply chains, reinforcing the strategic importance of diversified gas sourcing. Natural gas price volatility feeds directly into helium supply dynamics, as helium is typically produced as a byproduct of natural gas processing. This interconnection means that geopolitical tensions affecting traditional energy corridors create supply constraints across multiple industrial gas markets simultaneously.

Energy security considerations now extend beyond crude oil and natural gas to include industrial gases classified as strategic materials by governments and corporations. Helium, in particular, has been designated a critical mineral by the United States, with export restrictions implemented to secure domestic supply for defense and technology applications. This classification elevates helium from a commodity input to a strategic resource, fundamentally altering its pricing dynamics and supply chain management.

Industrial Gases as Strategic Inputs in a De-Risking Environment

The volatility in global gas markets has created recognition among industrial consumers that supply chain resilience requires geographic diversification and long-term contract structures. Traditional helium suppliers concentrated in Qatar, Algeria, and Russia face increasing scrutiny from European and North American buyers seeking supply security. This shift in procurement strategy supports premium pricing for suppliers operating in stable jurisdictions with transparent regulatory frameworks.

Industrial demand for semiconductor-grade helium and electrolytic hydrogen now incorporates strategic premiums reflecting supply chain risk assessment. Companies requiring consistent gas supply for critical manufacturing processes are willing to pay higher prices for guaranteed delivery from politically stable regions. This risk-adjusted pricing environment creates opportunities for resource developers in tier-1 mining jurisdictions to capture margins above commodity benchmark pricing.

Capital Formation & Strategic Deployment in Mining

Case Insight: Georgina Energy & Scarcity Value in Australia

The convergence of hydrogen infrastructure development and semiconductor manufacturing expansion has created a compelling investment case for companies with diversified gas resources. Georgina Energy exemplifies this opportunity through its tier-1 assets at Hussar and Mt Winter in Australia, offering combined exposure to helium, hydrogen, and natural gas within a single resource base.

The company's combined 2U resource estimate totals 303 billion cubic feet of gas equivalent (BCFG) helium, 308 BCFG hydrogen, and 2.97 trillion cubic feet of gas equivalent (TCFG) hydrocarbons. This resource mix provides operational flexibility across multiple end markets while leveraging shared infrastructure for cost efficiency. The scale of these resources positions Georgina among the larger undeveloped gas projects globally, with the additional advantage of geographic concentration that reduces development complexity.

Helium pricing has demonstrated exceptional strength, doubling from US$267 per thousand cubic feet in 2020 to nearly US$500 per thousand cubic feet in 2023. Long-term supply contracts have become increasingly scarce as producers prioritize security of demand over pricing flexibility. CEO Anthony Hamilton emphasizes the strategic advantage of direct wellhead supply, notes that:

"We're selling it at the well head, which eliminates midstream infrastructure costs and accelerates commercialization timelines.”

The recent completion of seismic reprocessing and resource upgrade at Mt Winter in May 2025 added 15% to the helium and hydrogen resource base, demonstrating the potential for continued resource growth through advanced technical analysis. This expansion supports the investment thesis for early-stage positioning in quality assets before resource development reaches full commercial scale.

Financial Efficiency & Off-take Optionality

Georgina's Scoping Study confirms the economic viability of supplying gases directly from the wellhead under offtake arrangements, mitigating the capital expenditure typically required for midstream processing facilities. The company is targeting farm-in partnerships to reduce shareholder dilution while accelerating development timelines through shared technical expertise and financial resources. Operating within Australia provides jurisdictional stability and regulatory transparency that international investors increasingly prioritize when evaluating resource development projects.

Hamilton outlines the company's strategic approach to development financing, explaining that:

"One of the conditions that we have set with the off-takers was that in the event that is economic and sustainable and it meets their requirements, then we want to be reimbursed for our entire development cost for that well." 

This structure reduces execution risk while maintaining commodity price exposure, creating an attractive risk-adjusted return profile for equity investors.

Executive Finance Director Mark Wallace highlights the company's financial position with cash reserves of £4.33 million providing operational runway through the permitting process and into initial development phases. This financial foundation, combined with the company's strategic approach to partnership development, positions Georgina for potential merger and acquisition opportunities as larger industrial gas companies seek to secure upstream supply sources.

Project Readiness in a Dynamic Market Environment

Milestones, Permitting, & News Flow for 2025

The regulatory pathway for Georgina's projects demonstrates the advanced stage of development relative to exploration-stage peers. EP513 at Hussar and EPA155 at Mt Winter are both targeting regulatory approvals in 2025, with drilling permits expected by December. The company has completed environmental impact studies and heritage assessments required for permit issuance, indicating thorough preparation for operational commencement.

The timing of these regulatory milestones aligns strategically with the peak period of European hydrogen infrastructure buildout. As electrolyzer facilities come online between 2025 and 2027, demand for industrial gas inputs will accelerate, creating favorable market conditions for new supply sources. Hamilton confirms operational readiness, stating that drilling at Hussar will commence with "a 50-day program to complete the job" following permit approval, demonstrating the company's preparation to capitalize on market timing.

Resource upgrade activities and news flow cadence are designed to synchronize with rising industrial gas demand across European and Asian markets. The company's technical program includes reprocessing of 2D seismic data from the 1970s using modern analytical techniques, combined with aerial survey overlays to enhance subsurface understanding.

ESG, Carbon Metrics, & Export Alignment

The ESG profile of helium and hydrogen projects offers lower regulatory risk compared to traditional fossil fuel assets, supporting institutional investment criteria focused on environmental sustainability. Georgina's position as a potential supplier of low-emission industrial gases to global partners aligns with corporate procurement strategies emphasizing supply chain decarbonization.

The Northern Territory and Federal Australian government support for gas-linked infrastructure development, including $110 billion in national pipeline investment, provides additional regulatory tailwinds for project advancement. This systematic approach to resource definition supports confidence in commercial development potential while meeting increasingly stringent environmental standards required by institutional investors.

Thematic Exposure & Resource Allocation Strategies

Portfolio Implications Across the Value Chain

Institutional investors seeking hydrogen economy exposure increasingly recognize that input-side assets, including gas resources, electrolyzer technology, and rare earth minerals for fuel cells, offer more direct exposure to demand growth than downstream applications. Helium's constrained global supply and limited substitute materials provide asymmetric upside potential within commodity portfolios, particularly as strategic stockpiling by governments and corporations intensifies.

The dual commodity exposure of helium and hydrogen creates portfolio diversification benefits through different demand drivers and price cycles. Helium demand is driven by technology sector growth and industrial applications, while hydrogen demand reflects energy transition policies and decarbonization mandates. This combination provides stability through varying economic cycles while maintaining exposure to high-growth secular themes.

Asset Class Rotation & Inflation Protection

Asset class rotation toward hard commodities as inflation protection has accelerated institutional interest in resources with strategic applications and limited supply elasticity. Helium and hydrogen qualify as inflation-hedged, non-correlated commodities within this framework, particularly given their applications in technology infrastructure and industrial decarbonization. Long-duration capital is increasingly flowing toward assets that are difficult to replicate and possess strategic relevance across multiple industries.

The geographic concentration of traditional helium supply in politically volatile regions creates opportunities for suppliers in stable jurisdictions to capture market share through reliability premiums. Australia's established mining regulatory framework and political stability provide institutional investors with confidence in project execution and operational continuity over multi-decade time horizons.

The Investment Thesis for Hydrogen & Helium

• Industrial decarbonization, semiconductor sovereignty, energy security imperatives, and global trade realignment creates multiple demand vectors supporting helium and hydrogen markets. These macro themes are reinforced by regulatory frameworks that classify these gases as strategic materials, elevating their importance in national security and economic competitiveness considerations.
• Jurisdictional stability in resource development has become a primary investment criterion as geopolitical tensions affect traditional energy supply chains. Georgina's Australian assets operate within a tier-1 mining jurisdiction with transparent permitting processes and established legal frameworks supporting foreign investment. This regulatory environment provides operational certainty that enables long-term planning and capital allocation decisions.
• The favorable cost structure of direct wellhead supply minimizes midstream infrastructure requirements and accelerates commercialization timelines compared to projects requiring extensive processing facilities. Multi-commodity resource exposure provides flexibility in revenue optimization and offtake targeting across different end markets. The ability to adjust production emphasis between helium, hydrogen, and natural gas based on market conditions enhances project economics and reduces single-commodity exposure risk.
• Development timing alignment with the demand curve creates optimal market entry conditions. The 2025 permitting timeline synchronizes with peak European hydrogen project buildouts and accelerating semiconductor manufacturing expansion. This timing provides access to robust offtake markets while avoiding the oversupply conditions that often affect commodities with long development lead times.

Hamilton expresses confidence in the project's technical potential, noting that:

"From our perspective we have a high degree of expectation that we’ll deliver based on historical data and consultant analysis.”

Recent resource expansion and ongoing partnership discussions support re-rating potential as project development advances, while operational resilience against supply chain and geopolitical risks distinguishes Australian-based projects from alternatives in traditional energy corridors.

The evolution toward scarcity-driven pricing reflects the strategic importance of helium and hydrogen in critical industries. As governments implement strategic stockpiling programs and corporations secure long-term supply agreements, available supply for spot markets decreases, supporting premium pricing for reliable suppliers. This structural shift from commodity pricing to strategic material valuation represents a fundamental change in market dynamics that supports sustained margin expansion for quality resource developers.