After geologic hydrogen, a new form of underground energy, got found in vast deposits along tectonic plates in US earlier this week; Koloma, a company founded two years ago 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.

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 of US.

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.

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.

The World Bank has also argued low and Middle income countries to start the clean energy transition thus phasing out the fossils fuels.   

If all goes well drilling for hydrogen will turn out to be as common as drilling for oil and gas.

Segments filed by Koloma.com

Edited by UGpepper

Author: UG pepper

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