Vema Hydrogen Raises $13 Million for Low-Carbon Hydrogen Pilot Wells in North America

Vema Hydrogen, a company pioneering low-carbon hydrogen production through its Stimulated Geologic Hydrogen (SGH) technology, has raised $13 million in an oversubscribed seed funding round. The round was co-led by Extantia Capital and Propeller Ventures, with additional participation from Zero Carbon Capital, Pace Ventures, and existing investor Grantham Foundation. The fresh funding will be used to develop the first clusters of full-scale SGH pilot wells in North America, marking a significant step in the company's commercial progress.

A New Approach to Hydrogen Production: From Rocks to Energy

Vema Hydrogen introduces an innovative solution for low-carbon hydrogen production, offering a cost-effective and environmentally sustainable alternative to conventional methods. The company's SGH technology utilizes natural underground reactions to generate hydrogen. In this process, a brine solution containing catalysts is injected into shallow geological formations, where it reacts with iron-bearing minerals to produce hydrogen. The resulting hydrogen can be utilized for electricity generation, heating, or as a feedstock for green chemicals and fuels.

This novel approach addresses the challenges of existing hydrogen production methods by minimizing environmental impact and reducing production costs. Unlike traditional processes, Vema's technology delivers more energy than the amount consumed during production, enhancing efficiency while supporting the transition to cleaner energy solutions.

Controlled Hydrogen Production Without Exploration Uncertainty

While conventional geological hydrogen extraction often relies on unpredictable natural deposits, Vema Hydrogen employs a method that enables precise and controlled hydrogen production in strategically selected areas. This approach reduces logistical complexities, optimizes production efficiency, and offers consistent control over gas composition and flow rates. It positions Vema's solution as a scalable and cost-effective option for meeting growing hydrogen demand.

Commenting on the company's approach, Yair Reem, Partner at Extantia Capital, stated: “The way that we see it, if white hydrogen is like digging for gold, Vema’s approach is like alchemy. 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.”

Founders Combining Expertise and Experience

Vema Hydrogen was founded in early 2024 by Dr. Florian Osselin and serial entrepreneur Pierre Levin at the venture studio Marble. Dr. Osselin, a prominent researcher and the inventor of SGH technology, authored the pioneering research paper on stimulated geologic hydrogen. Meanwhile, CEO Pierre Levin, with his extensive background in the natural hydrogen and resource industries, brings vital commercial and operational expertise to scale the company’s technological breakthrough.

Rising Hydrogen Demand Signals Market Opportunity

Hydrogen plays a crucial role in the global energy transition, with demand reaching 97 million tonnes in 2023—equivalent to 2.5% of global final energy consumption and contributing around 3% of annual greenhouse gas emissions. Forecasts indicate that demand could soar to nearly 600 million tonnes annually by 2050, creating a market valued at approximately $1.4 trillion.

Speaking on the company’s vision, Pierre Levin, CEO of Vema Hydrogen, stated: “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. 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 Pilot Wells for a Sustainable Hydrogen Future

With the newly secured funding, Vema Hydrogen is set to commence the development of pilot wells in North America, marking a key phase in demonstrating the commercial viability of its technology. By delivering low-cost and low-carbon hydrogen, Vema aims to contribute meaningfully to the growing clean energy sector. As the global push for decarbonization intensifies, Vema Hydrogen’s approach has the potential to play a significant role in shaping the future energy landscape for years to come.