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Vema Hydrogen raises $13 million to develop pilot wells in North America using Stimulated Geologic Hydrogen (SGH) technology, which extracts hydrogen from iron-rich rocks through chemical reactions. This method offers a low-cost, low-carbon alternative to traditional hydrogen production by eliminating the need for fossil fuels or energy-intensive electrolysis. With backing from climate-focused investors, the company aims to scale its technology to meet the growing global demand for clean hydrogen.
Hydrogen from Rocks? Here’s How Vema Hydrogen Makes It Possible
Vema Hydrogen is developing a method to produce clean hydrogen by leveraging natural geological reactions. The company’s Stimulated Geologic Hydrogen (SGH) technology extracts hydrogen from iron-rich rocks by injecting a brine solution infused with catalysts. This reaction releases hydrogen gas, which can then be captured and used as an energy source.
This process eliminates the need for electrolysis or fossil fuel-based hydrogen production, which are either costly or emit significant carbon dioxide. Traditional hydrogen extraction depends on natural deposits, but Vema Hydrogen’s approach enables targeted production in selected locations. This method improves efficiency, lowers costs, and minimizes environmental impact.
$13 Million and Counting: Who Backs Vema Hydrogen’s Vision?
Vema Hydrogen raised $13 million in an oversubscribed seed funding round led by Extantia Capital and Propeller Ventures, with participation from Zero Carbon Capital, Pace Ventures, and the Grantham Foundation. These firms focus on supporting technologies that drive decarbonization and sustainable energy solutions.
The investment will be used to develop pilot wells in North America, which will demonstrate the viability of SGH technology at a larger scale. The company aims to validate its method under real-world conditions before expanding further.
The Science Behind Vema Hydrogen’s Breakthrough Approach
Hydrogen is typically extracted from water through electrolysis or from hydrocarbons through steam reforming, both of which require large amounts of energy. SGH technology offers an alternative by stimulating underground reactions in iron-rich geological formations.
A catalyst-infused brine solution is injected into these formations, triggering a chemical reaction that releases hydrogen. Unlike traditional methods, this technique does not require high temperatures or large external energy inputs. Instead, it taps into existing geological processes, offering a scalable way to generate hydrogen with minimal emissions.
Unlike conventional hydrogen extraction, which relies on naturally occurring reservoirs, SGH technology creates hydrogen on demand in controlled locations. This eliminates exploration risks and provides predictable, consistent production rates.
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Why the World Needs More Clean Hydrogen Right Now
Hydrogen demand reached 97 million tonnes in 2023, accounting for 2.5% of global final energy consumption and contributing to 3% of annual greenhouse gas emissions. As industries seek alternatives to fossil fuels, hydrogen’s role is expected to expand significantly.
By 2050, hydrogen consumption is projected to rise to 600 million tonnes per year, creating a $1.4 trillion market. Current hydrogen production methods are either carbon-intensive or too expensive to scale efficiently. SGH technology offers a potential solution by making hydrogen more affordable and accessible without the reliance on fossil fuels.
Meet the Minds Behind Vema Hydrogen’s Bold Innovation
Vema Hydrogen was founded by Dr. Florian Osselin and Pierre Levin in early 2024 at the venture studio Marble.
Dr. Osselin is a leading researcher in geologic hydrogen and the author of the seminal paper on SGH technology. His work laid the foundation for Vema Hydrogen’s approach by demonstrating how iron-bearing rocks can serve as a continuous source of clean hydrogen.
Pierre Levin is a serial entrepreneur with expertise in the natural hydrogen and resource industries. His experience in scaling early-stage energy companies is expected to drive Vema Hydrogen’s transition from pilot projects to commercial-scale operations.
Scaling Up: What’s Next for Vema Hydrogen?
The company’s immediate goal is to establish pilot wells in North America to test its technology at scale. These wells will determine how efficiently SGH technology can produce hydrogen under varying geological conditions.
If successful, Vema Hydrogen plans to expand its operations to additional locations, leveraging the vast availability of iron-rich rock formations worldwide. The long-term vision is to create a scalable, low-cost alternative to traditional hydrogen production, helping industries transition away from carbon-heavy energy sources.
The Clean Hydrogen Era Starts Now
Vema Hydrogen’s approach introduces a method of producing low-carbon hydrogen that bypasses the limitations of electrolysis and steam reforming. The company’s SGH technology provides a potential solution to hydrogen’s cost and scalability challenges, offering a cleaner, more efficient energy source.
With backing from climate-focused investors and a strategy centered on scalable hydrogen production, Vema Hydrogen is positioning itself as a major contributor to the clean energy landscape. As hydrogen adoption accelerates, methods like SGH could play a crucial role in shaping a more sustainable future.
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