HyTerra opens exclusive UAE pathway for natural hydrogen exploration

Exclusive UAE access expands HyTerra’s hydrogen strategy

HyTerra Ltd (ASX:HYT) has secured an exclusive pathway to negotiate a commercial agreement over a 256 km² block in Ras Al Khaimah, adding a second foothold along the Semail Ophiolite after its existing collaboration in Oman. The 18-month memorandum of understanding with the Ras Al Khaimah Department of Energy gives HyTerra time to assess Block 1 in the RAK South area, but it is not an exploration licence or a binding development deal.

Existing data will determine whether the opportunity advances

The immediate test is technical rather than financial. RAK DoE is expected to provide a comprehensive subsurface dataset and a commercial term sheet within 14 days, allowing HyTerra to review geological and geophysical information, analyse available samples and build integrated models of hydrogen generation and prospectivity.

“Previous exploration and technical work in Ras Al Khaimah has identified potential natural hydrogen plays.3 Published third-party surface sampling across the northern Semail…”

That work matters because the announcement points to potential rather than an established resource. Earlier exploration and technical studies identified possible natural hydrogen plays, while published third-party sampling across the northern Semail Ophiolite recorded hydrogen-rich gas seeps containing up to approximately 88% hydrogen after air correction. Those results indicate geological interest, but do not demonstrate flow rates, recoverability or commercial development potential in Block 1.

Semail Ophiolite gives HyTerra a cross-border geological thesis

“Location of Block 1 (256 km²) and the distribution of surface hydrogen sample analyses (H2 mol %) across the northern Semail Ophiolite in Oman and the United Arab Emirates,…”

The Semail Ophiolite stretches across Oman and the UAE and contains ultramafic rocks capable of generating hydrogen through water-rock reactions such as serpentinisation. HyTerra says the UAE opportunity complements its Oman collaboration and strengthens its exposure to the same geological trend across two jurisdictions.

Ras Al Khaimah also offers features that could support future evaluation, including proximity to industrial areas, existing gas infrastructure and a subsurface dataset built through decades of oil and gas exploration. The UAE’s national hydrogen strategy targets 1.4 million tonnes of low-carbon hydrogen production annually by 2031, although that policy ambition does not establish demand, pricing or a commercial pathway for naturally occurring hydrogen at this project.

MOU limits near-term spending and shareholder certainty

The MOU is binding on matters including exclusivity, confidentiality, intellectual property, indemnities and dispute resolution, but remains otherwise non-binding for the proposed commercial agreement. HyTerra is not committed to drilling or material exploration expenditure, with any future work program to be determined after technical evaluation and ranking.

Exclusivity continues until the earlier of 180 days after the technical work is completed or the MOU expires. There is no certainty that the parties will agree terms, or that any future agreement would provide the scope, tenure or timing needed to move into exploration. The next meaningful signal will therefore be the quality of the subsurface data and whether the commercial term sheet can convert this strategic option into a binding project.