Vema Hydrogen Raises $13M To Produce Clean Hydrogen

Cleantech company Vema Hydrogen has raised $13 million in a Seed funding round to fund its new method of affordable, carbon-free hydrogen production. The funds will be used to drive the company's drive to scale up its innovative technology, which promises to create hydrogen below ground for less than $1 per kilogram—much lower than is possible with existing low-carbon hydrogen production.

Hydrogen has long been considered a crucial element in the transition to cleaner energy, especially for industries where renewable energy sources such as wind and solar are not viable alternatives. Sectors like heavy industry, shipping, and aviation require high-energy-density fuels, making hydrogen an attractive option. However, the majority of hydrogen produced today—around 90 million metric tons annually—is derived from fossil fuels, leading to greenhouse gas emissions and environmental pollution.

While clean hydrogen alternatives such as green hydrogen, which is produced using renewable energy to power electrolysis, offer a more sustainable solution, they remain costly and require significant infrastructure investments. Current production costs for low-carbon hydrogen hover around $5 per kilogram, making it financially uncompetitive compared to conventional hydrogen sources. Another potential solution, white hydrogen, which is naturally occurring and can be extracted from underground reservoirs, presents its own set of challenges, including high energy consumption, exploration risks, and transportation difficulties.

Founded in 2024 at the Paris-based Marble Climate Tech Venture Studio by Florian Osselin and Pierre Levin, Vema Hydrogen has developed a breakthrough method for producing hydrogen from geological resources. Instead of waiting for naturally occurring hydrogen deposits to accumulate over time, the company’s technology—called the Stimulated Geologic Hydrogen process—accelerates and controls the hydrogen production process deep underground. By injecting water and a catalyst into iron-rich rock formations, the method triggers geochemical reactions that generate hydrogen at a significantly lower cost than conventional methods.

Vema’s approach has the potential to reshape the hydrogen industry by providing a long-term, scalable, and cost-effective alternative to fossil fuels. The company claims that its process could enable hydrogen production for thousands of years, even if it were to entirely replace fossil fuel resources. With its ability to extract hydrogen from geological formations efficiently, Vema aims to address the economic and logistical barriers that have historically limited clean hydrogen’s growth.

Pierre Levin, CEO of Vema Hydrogen, emphasized the importance of their innovation in driving the energy transition forward. He pointed out that despite growing demand for clean hydrogen, existing decarbonized production methods remain too costly and energy-intensive. Levin expressed confidence that Vema’s technology could change the landscape of hydrogen production, making it a viable alternative for industries looking to reduce their carbon footprint.

The company’s vision has attracted strong investor interest. The $13 million funding round was co-led by Extantia Capital and Propeller, with additional backing from Zero Carbon Capital, Pace Ventures, and returning investor The Grantham Foundation for the Protection of the Environment. Investors view Vema’s approach as a potential game-changer for the hydrogen economy, with the ability to overcome the challenges associated with both green and white hydrogen production.

Yair Reem, a partner at Extantia Capital, highlighted the significance of Vema’s innovation, comparing it to alchemy rather than traditional resource exploration. While white hydrogen production relies on discovering naturally occurring underground deposits, Vema’s method essentially creates its own hydrogen, ensuring a more predictable and scalable supply. Reem described this breakthrough as one of the most important energy discoveries of our time.

The potential impact of Vema’s hydrogen production method extends beyond just cost savings. By eliminating the need for large-scale electrolysis infrastructure and reducing reliance on fossil fuel-derived hydrogen, the company’s technology could play a crucial role in meeting global climate goals. Many industries and governments are actively seeking cost-effective solutions to decarbonize energy systems, and Vema’s approach offers a promising pathway to making clean hydrogen a mainstream energy source.

As countries around the world push forward with net-zero targets, the demand for sustainable hydrogen solutions is expected to grow significantly. Vema Hydrogen’s technology could help accelerate the transition to a low-carbon economy by providing an affordable, scalable, and environmentally friendly hydrogen source. With its recent funding boost, the company is well-positioned to refine its process, expand its operations, and bring its innovative hydrogen production method to market.

By pioneering a new era of hydrogen production, Vema Hydrogen is challenging existing limitations and opening the door to a future where clean, low-cost hydrogen is widely accessible. If successful, its technology could mark a turning point in the global energy transition, making clean hydrogen a practical and economically viable solution for industries seeking to reduce emissions and move away from fossil fuels.