Bill Gates Backs Secret Startup for Clean Energy Revolution - EnergyPortal.eu

Bill Gates Backs Secret Startup for Clean Energy Revolution

A Denver-based startup called Koloma has quietly raised $91 million to drill for carbon-free hydrogen that is continuously generated underground. If successful, this venture could accelerate the clean energy revolution and tap into a potential $1 trillion market.

Geologic hydrogen, a new form of underground energy, has been found in vast deposits along tectonic plates. Tom Darrah, co-founder and CTO of Koloma, who is an expert in extracting hydrogen, believes that the scale and potential of geologic hydrogen are profound.

Koloma, founded two years ago, has been operating in stealth mode. It is currently drilling its first wells in the Midwest, testing rock and gas samples at its Columbus lab to determine the sites with the best hydrogen volume and purity. The startup has received $91 million in funding from Bill Gates’s Breakthrough Energy Ventures, Energy Impact Partners, Evōk Innovations, Prelude Ventures, and Piva Capital, making it the most well-funded player in the space.

The global hydrogen market is currently worth over $120 billion, with annual usage of about 100 million metric tons. Most hydrogen is produced from natural gas, which emits carbon. However, the U.S. government sees hydrogen as a carbon-free energy source and has allocated $9.5 billion for clean hydrogen projects in the 2021 Infrastructure Law. In addition, a tax credit of $3 per kilogram for zero-carbon fuel has been included in the Inflation Reduction Act.

Scientists and experts, including Doug Wicks of the Energy Department’s ARPA-E, believe that geologic hydrogen has the potential to displace fossil fuels. Goldman Sachs estimates that the hydrogen market will double to $250 billion by 2030 and reach over $1 trillion annually by 2050.

Though commercial operations for Koloma have not been announced, the company could generate tens of billions of dollars in revenue within a decade if successful. The revelation that the earth contains vast reserves of carbon-free geologic hydrogen that is continuously generated is an encouraging development as the need to address climate change becomes more evident.

According to Michael Webber, an energy expert and professor, there are trillions of kilograms of hydrogen trapped underground. While it is uncertain how much can be accessed cheaply, the potential is significant.

Working with hydrogen presents challenges due to its light and flammable nature. However, when used in fuel cells, it can produce pure clean energy with only water as a byproduct. Hydrogen can be used as a zero-carbon fuel for vehicles, generators, and various power applications. Koloma believes that geologic hydrogen will be a cheaper and less energy-intensive form than green or blue hydrogen, which are produced from renewable sources or natural gas, respectively.

Koloma’s geologic hydrogen production operations may qualify for incentives provided by the Infrastructure Law and clean hydrogen production credits. The startup is setting the stage for a future where drilling for hydrogen is as common as drilling for oil and gas.