Vema Hydrogen, pioneering clean hydrogen production with its Stimulated Geologic Hydrogen technology, raised new funding to develop pilot wells in North America, offering an abundant, low-cost, and low-carbon alternative to traditional methods.
Vema Hydrogen, a company revolutionising hydrogen production with its Stimulated Geologic Hydrogen (SGH) technology, has successfully raised $13M in an oversubscribed seed funding round. The investment was co-led by Extantia Capital and Propeller Ventures, with participation from Zero Carbon Capital, Pace Ventures, and existing investor Grantham Foundation. The funds will be used to develop the first clusters of full-scale SGH pilot wells in North America.
Turning rock into hydrogen: Vema‘s game-changing approach
Vema Hydrogen is revolutionising the hydrogen industry by providing a clean, affordable, and abundant supply. Their innovative approach is set to eliminate the environmental downsides of traditional production, reshaping the hydrogen landscape.
The company’s SGH technology leverages natural underground reactions to generate hydrogen. A brine solution infused with catalysts is injected into shallow geological formations, triggering a reaction with iron-bearing minerals to produce hydrogen. This hydrogen can then be used for electricity generation, heating, or as a feedstock for green chemicals and fuels.
Vema’s innovative technology helps bridge the gap between current low-carbon production and future energy demands, fostering widespread hydrogen adoption while minimizing environmental and economic costs. Remarkably, the hydrogen produced serves as an energy source rather than just an energy vector, as it delivers more energy than the amount required for its production.
Unlike traditional geological hydrogen extraction, which depends on chance discoveries, Vema’s method enables precise hydrogen production in strategically selected locations. This minimises logistical challenges, reduces costs, and allows for greater control over gas composition and flow rates—offering a scalable and economically attractive alternative.
“The way that we see it, if white hydrogen is like digging for gold, Vema’s approach is like alchemy,” said Yair Reem, Partner at Extantia Capital. “They don’t rely on exploration luck but rather create their own luck and will almost always strike ‘white gold.’ It’s a game-changer for what is poised to be the most important discovery in energy in our lifetime.”
Vema Hydrogen’s team: Built for impact
Vema Hydrogen was co-founded in early 2024 at the venture studio Marble by Dr Florian Osselin and serial entrepreneur Pierre Levin. Dr Osselin, a leading researcher in the field, pioneered the SGH technology and authored the seminal paper on stimulated geologic hydrogen. Levin, a veteran in the natural hydrogen and resources industries, brings commercial expertise to scale Vema’s breakthrough innovation.
Rising demand for hydrogen fuels opportunity
Hydrogen plays a critical role in global industries, with demand reaching 97 million tonnes in 2023—accounting for 2.5% of global final energy consumption and about 3% of annual greenhouse gas emissions. Projections suggest that demand could soar to nearly 600 million tonnes per year by 2050, creating a $1.4Tn market.
Vema’s technology aims to bridge the gap between current low-carbon production and future hydrogen needs, offering a cost-effective and scalable solution.
“The energy transition and emerging uses of hydrogen have spurred demand for clean hydrogen. However, existing decarbonised hydrogen production methods simply don’t work—they are too costly and energy-intensive. Vema is here to change that,” said Pierre Levin, Vema’s CEO. “It’s time to unlock a new era of scalable, low-carbon hydrogen. Our approach delivers cost-competitive clean hydrogen, even compared to natural gas. There are abundant stimulable rocks worldwide to produce for thousands of years, and we can’t wait to get started.”
Scaling up for a hydrogen-powered future
With its fresh funding, Vema Hydrogen is set to develop pilot wells in North America, marking a significant step towards making clean hydrogen production commercially viable. By offering an abundant, low-cost, and low-carbon alternative to traditional methods, the company is positioning itself as a key player in the transition to a sustainable energy future.
As the global push for decarbonisation accelerates, Vema’s breakthrough approach could play a vital role in reshaping the energy landscape for decades to come.
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