Koloma Secures $245.7 Million in Funding for Innovative Hydrogen Extraction
Clean energy startup Koloma has successfully raised $245.7 million in a recent financing round, establishing itself as a prominent player in the emerging field of extracting carbon-free hydrogen from natural underground deposits. The funding was unveiled in a Securities and Exchange Commission filing on February 9, following Koloma’s receipt of a research grant from a U.S. Energy Department program. This program aims to enhance methods for stimulating underground hydrogen production and extracting this elemental fuel.
Led by Khosla Ventures, the funding round witnessed participation from major investors, including Amazon and United. Notable cleantech supporters, such as Bill Gates’ Breakthrough Energy Ventures and Energy Impact Partners, also contributed to the funding round. With this latest injection, Koloma’s total funding has now exceeded $350 million.
“We’re grateful to be backed by some of the world’s leading companies and investors in our recent fundraise,” expressed Paul Harraka, Koloma’s Chief Business Officer and Co-founder.
Koloma, which emerged from stealth mode with coverage from Forbes last year, is focused on commercializing the extensive research conducted by its CTO and Co-founder, Tom Darrah, an Ohio State University geologist. Darrah’s research has delved into identifying optimal locations for naturally occurring hydrogen pockets, leveraging techniques developed by the oil and gas industry.
Over the past year, there has been a notable surge in awareness regarding the natural generation of hydrogen in underground pockets, both in the U.S. and globally. Recent reports, such as Science’s coverage on February 8, highlight the discovery of a substantial hydrogen reserve in an Albanian mine, further emphasizing the increasing significance of naturally generated hydrogen.
Geologic hydrogen companies are leveraging long-established drilling techniques from the oil and gas industry.GETT
In a 2023 interview, Tom Darrah, Chief Technology Officer and Co-founder of Koloma, emphasized the global ubiquity of hydrogen, stating, “It’s on every continent. The scale of how much there is profound.”
The allure of hydrogen lies in its versatility as an energy source. It has the potential to reduce carbon emissions, power vehicles, and serve as an efficient means for storing or generating electricity. Currently, a majority of industrial hydrogen is produced by extracting it from natural gas through a process involving steam, which results in carbon dioxide emissions. While a new sector is emerging for carbon-free “green” hydrogen, produced through electrolysis, which extracts the element from water using electricity, this approach is considered more expensive. Advocates for geologic hydrogen believe it holds promise as the most cost-effective option due to the utilization of well-established energy-drilling techniques.
The U.S. Treasury Department’s proposed rules for a new credit, offering up to $3 per kilogram of clean, zero-carbon hydrogen, encompass the geologic form alongside green hydrogen.
Koloma’s recent funding success, amounting to $245.7 million, was initially reported by Axios. This substantial investment positions Koloma as a significant player in advancing the extraction of hydrogen from natural underground deposits.