Vema Hydrogen has successfully closed a substantial $13 million seed funding round, aiming to produce natural hydrogen at a cost below $1 per kilogram—a price point that, until now, seemed almost as elusive as the mythical Philosopher’s Stone.
This breakthrough centers around Vema’s proprietary technology, which leverages naturally occurring underground reactions to produce hydrogen. This method involves injecting a brine solution containing specific catalysts into geological formations. These formations, rich in iron-bearing minerals, react with the solution to efficiently yield hydrogen. This approach not only mitigates the geological risks typically associated with natural hydrogen extraction projects but also strategically places production sites in close proximity to industrial consumers, thereby significantly reducing the logistical and transportation costs.
This strategic and technological edge is highlighted by Yair Reem, a partner at Extantia Capital, who eloquently compares the method to alchemy—contrasting it with traditional hydrogen extraction that’s akin to prospecting for gold. Vema’s technique promises consistent results by eliminating the unpredictability of exploration, effectively turning the hunt for ‘white gold’ into assured production.
The funding round was notably oversubscribed, co-led by Extantia Capital and Propeller Ventures. It also saw participation from Zero Carbon Capital, Pace Ventures, and existing investor The Grantham Foundation for the Protection of the Environment. The capital influx is earmarked for developing the first full-scale pilot wells across North America, marking an important milestone in scaling Vema’s technology.
Vema’s executive team, comprising Florian Osselin and CEO Pierre Levin, brings together more than thirty years of expertise in advanced subsurface technologies. Their leadership is expected to drive the company’s mission of delivering scalable and cost-effective clean hydrogen solutions. Vema’s approach promises not just economic and logistical advantages but also an environmental impact by providing a low-carbon alternative that might be competitive even with natural gas.
The journey of Vema Hydrogen, from concept to funded technology developer, underscores the transformative potential of clean hydrogen. As industries strive for decarbonization, initiatives like Vema’s are crucial in paving the way to sustainable energy solutions. With an abundant availability of suitable geological formations, the scalability of Vema’s technology could meet global energy needs for hydrogen production for many years to come.
