Vema Hydrogen Secures $13 Million to Produce Clean Hydrogen Below $1 per Kilogram

A Major Step Toward Affordable, Carbon-Free Hydrogen

Vema Hydrogen has raised $13 million in a Seed funding round to advance its innovative method of producing clean hydrogen at a cost below $1 per kilogram. This breakthrough technology could significantly change the economics of hydrogen production, making it more viable for industries that rely on fossil fuels.

The company, founded in 2024 at Paris-based Marble Climate Tech Venture Studio, was established by Florian Osselin and Pierre Levin to develop a scalable method for extracting hydrogen from geological resources. Instead of relying on costly electrolysis or traditional hydrogen extraction, Vema Hydrogen is pioneering a process that could provide long-term, affordable, and carbon-free hydrogen.

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The Challenge of Scaling Clean Hydrogen

Hydrogen is widely regarded as a key energy source for hard-to-abate sectors, where wind and solar aren’t practical solutions. However, most hydrogen production today is fossil fuel-based, generating significant greenhouse gas emissions. Even green hydrogen, produced using renewable energy, remains expensive—typically costing around $5 per kg.

Another potential source, white hydrogen, involves drilling for naturally accumulated underground hydrogen. But this method comes with major challenges, such as high exploration costs, low hydrogen concentrations, and expensive transportation.

The Vema Hydrogen Breakthrough

Vema Hydrogen’s $13 million funding round will support the development of its Stimulated Geologic Hydrogen process, which accelerates natural geochemical reactions to produce hydrogen. Instead of waiting for hydrogen to accumulate underground, the company injects water and a catalyst into iron-rich rock formations, stimulating hydrogen production in a controlled and scalable way.

According to Vema Hydrogen, this technology can enable long-term hydrogen production, with underground reserves sufficient to supply energy needs for thousands of years, even if hydrogen completely replaces fossil fuels.

Pierre Levin, CEO of Vema Hydrogen, explained the significance of this innovation: "The energy transition and emerging uses of hydrogen have spurred demand for clean hydrogen. However, existing decarbonized hydrogen production methods simply don’t work—they are too costly and energy-intensive. Vema is here to change that. It’s time to unlock a new era of scalable, low-carbon hydrogen."

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Who’s Investing in Vema Hydrogen?

The funding round was co-led by Extantia Capital and Propeller, with additional backing from Zero Carbon Capital, Pace Ventures, and The Grantham Foundation for the Protection of the Environment.

Yair Reem, Partner at Extantia Capital, emphasized how Vema’s method could transform the clean hydrogen industry: "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."

What This Means for the Future of Hydrogen

With its innovative approach and strong financial backing, Vema Hydrogen is positioned to disrupt the clean hydrogen sector. If successful, its process could make low-cost hydrogen widely available, supporting industrial decarbonization efforts across sectors like steel, transportation, and chemical production.

The company’s work highlights the growing urgency to find cost-effective clean hydrogen solutions. As industries look for ways to reduce emissions, technologies like Vema Hydrogen’s Stimulated Geologic Hydrogen process could become essential tools for achieving global carbon reduction targets.

With its latest funding secured, the next phase for Vema Hydrogen will be scaling up operations and proving that its technology can deliver at a commercial level. If it does, the impact on the hydrogen industry—and the broader energy market—could be profound.