Bill Gates-Backed Startup Raises $246M for Hydrogen Drilling

In a monumental stride towards pioneering clean energy solutions, Koloma, a startup spearheading the extraction of carbon-free hydrogen from natural underground deposits, has secured a staggering $245.7 million in its latest financing round. This significant funding injection is poised to fortify Koloma’s position as a frontrunner in the burgeoning clean energy sector.

The groundbreaking development was revealed through a Securities and Exchange Commission filing on Feb. 9, swiftly following the acquisition of a research grant from a U.S. Energy Department program. This grant aims to further enhance Koloma’s methodologies for stimulating underground hydrogen production and refining the extraction process.

Leading the charge in this substantial funding round is Khosla Ventures, accompanied by noteworthy backers including Amazon’s Climate Pledge Fund and United Airlines’ Sustainable Flight Fund. This consortium of investors joins esteemed cleantech pioneers such as Bill Gates’ Breakthrough Energy Ventures and Energy Impact Partners, collectively propelling Koloma’s total funding to surpass the $300 million mark.

Paul Harraka, Koloma’s Chief Business Officer and Co-founder, expressed gratitude for the overwhelming support from renowned corporations and investors, underscoring the pivotal role they play in advancing the company’s mission.

Koloma’s inception stems from the pioneering research conducted by Tom Darrah, the company’s Chief Technology Officer and Co-founder, leveraging his expertise as an Ohio State University geologist. Darrah’s extensive studies have identified prime locations for naturally occurring hydrogen deposits and devised innovative techniques, drawing upon insights from the oil and gas industry.

The revelation of abundant underground hydrogen reservoirs across the United States and globally has recently garnered widespread attention. A notable discovery was reported in Albania, where a substantial reserve of hydrogen was unearthed in a mine, as documented by Science on Feb. 8. Darrah emphasized the ubiquitous nature of hydrogen, transcending geographical boundaries and offering profound potential for clean energy solutions.

The burgeoning interest in hydrogen stems from its versatility as an energy source, capable of curbing carbon emissions, fueling vehicles, and serving as a medium for electricity storage and generation. While conventional industrial hydrogen production involves carbon-intensive processes, such as steam-based extraction from natural gas, the emergence of carbon-free “green” hydrogen presents a promising yet costly alternative.

Geologic hydrogen presents a compelling proposition, leveraging established energy drilling techniques to extract the element with minimal environmental impact. Andy Lubershane, Head of Research for Energy Impact Partners, lauded Koloma’s pioneering efforts, acknowledging their unique advantages and position at the forefront of the industry.

The Treasury Department’s proposed regulations for a new hydrogen tax credit, offering up to $3 per kilogram of clean, zero-carbon hydrogen, encompass the geologic form alongside green hydrogen. This legislative initiative further underscores the growing recognition and support for innovative clean energy solutions.

The news of Koloma’s monumental funding round was initially reported by Axios, marking a significant milestone in the company’s journey towards revolutionizing the clean energy landscape.

With unparalleled financial backing and a steadfast commitment to innovation, Koloma is poised to lead the charge in ushering in a new era of sustainable energy solutions, driving meaningful progress towards a greener, more resilient future for generations to come.