Vema Hydrogen drills wells to stimulate hydrogen production deep underground, which could result in some of the cheapest hydrogen available.

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Vema Hydrogen has developed a method to produce hydrogen by drilling wells into iron-rich rock formations and stimulating hydrogen release underground. The company completed a pilot project in Quebec and signed a deal to supply California data centers. Vema expects to produce hydrogen for under $1 per kilogram initially, with costs potentially dropping below 50 cents per kilogram once techniques are refined. This would make it cheaper than current methods like steam methane reformation (70 cents to $1.60/kg) or electrolysis. The widespread distribution of suitable rock formations, particularly ophiolite in California, could enable hydrogen production near data centers, potentially reshaping where these facilities are built to access cheap, clean baseline power.

Vema predicts cheap hydrogen could change where data centers are built

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