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Business Wire
4 days ago
- Business
- Business Wire
Tulum Energy Secures $27 Million in Venture Financing to Rapidly Scale Groundbreaking Turquoise Hydrogen Technology
MILAN--(BUSINESS WIRE)-- Tulum Energy, a pioneering methane pyrolysis startup, has successfully closed a $27 million venture financing round. This significant investment, led by CDP Venture Capital (through its Green Transition Fund) and TDK Ventures and a global consortium of prominent investors including Tulum's founder TechEnergy Ventures, MITO Technology, through the MITO Tech Ventures fund, and Doral Energy Tech Ventures, underscores strong confidence in Tulum Energy's innovative approach to clean hydrogen production. Tulum Energy is at the forefront of developing a revolutionary methane pyrolysis technology. Methane pyrolysis is a chemical process that consists in producing clean (turquoise) hydrogen and solid carbon using natural gas or biogas as a feedstock, without CO 2 emissions. Methane Pyrolysis can overcome the economic and infrastructural limitations of green and blue hydrogen in the industrial production of decarbonized hydrogen. "The distinguishing feature of our technology is its unmatched combination of high scalability and exceptional energy efficiency," states Massimiliano Pieri, CEO of Tulum Energy. "This allows us to meet the substantial demands of large industrial consumers of hydrogen, such as refineries, ammonia producers, and chemical plants — at truly competitive costs, even without relying on tax credits and incentives." Pieri elaborates, "The core innovation lies in the repurposing of existing, commercially available machinery from the steelmaking industry to produce turquoise hydrogen. We are essentially readapting an electric arc furnace as a high-temperature heat source to crack methane molecules, yielding clean hydrogen and valuable solid carbon, rather than smelting iron." Proceeds from this Seed funding round will be strategically directed toward the construction of the company's pilot plant in Pesquería, Mexico, located within the industrial complex of Ternium, a leading steel producer in the Americas. "Ternium is the perfect partner to host our initial operations," adds Pieri. "They have an interest in utilizing our hydrogen for direct reduced iron (DRI) production, and they possess the robust infrastructure we need for seamless scaling." The Company will launch Tulum Energy's Italian subsidiary in Milan, which, by leveraging on the Italian manufacturing supply chain and talent, will serve as the central hub for research, development, and engineering activities for the Pilot and the subsequent commercial plants Tulum will develop. TechEnergy Ventures, the corporate venture capital arm of Tecpetrol, a leading energy company, meticulously built Tulum Energy from inception, originating the concept from industrial technology leader Tenova, a leading company in the provision of electric arc furnaces and H2-ready DRIs, the two critical technology pieces that can accelerate the decarbonization of steel. In 2022, TechEnergy Ventures forged a strategic partnership with Tenova, that propelled the opportunity from concept to a fully-formed company, securing crucial IP, assembling the core team, and providing the initial financial resources to launch the robust Business Plan. "Having a CVC with venture building capabilities allowed us to adopt an investor mindset from day one, enabling us to build a company that would be highly attractive for global investors from the get-go," explains Alejandro Solé, CIO of TechEnergy Ventures. Tenova's role as a technology partner provides Tulum Energy with a significant competitive advantage, offering deep industrial expertise and access to an established supply chain for equipment procurement and deployment. Tenova will also actively support Tulum's commercial efforts by providing access to its extensive industrial customer base. 'We started working with the concept of repurposing an electric arc furnace as a result of in-house experiments and our deep knowledge of EAF's,' explains Paolo Argenta, EVP of Tenova's Upstream Business Unit. Pieri emphasizes the company's accelerated roadmap: "Because we leverage existing components and an established supply chain from Tenova, our technological and commercial journey will be exceptionally time and capital-efficient. Following the Pilot, we will directly proceed to building our first full-scale commercial plant." CDP Venture Capital (Cassa Depositi e Prestiti Group) is the major asset management company in Italy. Its Green Transition Fund uses resources allocated by the EU through the NextGenerationEU initiative to support the green transition enhancing and stimulating the growth of an innovation ecosystem to develop the venture capital market in the sector, guiding companies through all stages of their growth. CDP Venture Capital's objective with this investment is to support the establishment of the Italian branch, in order to enhance the manufacturing supply chain and the excellence of the research and development process. In this manner, CDP Venture Capital will not only support the company's development but also facilitate critical access to further capital, reinforcing Tulum Energy's long-term financial strength. "Tulum Energy's scalable and efficient methane pyrolysis technology is a game-changer for industrial decarbonization. Our investment fully reflects our mission and our commitment to innovative solutions that drive the green transition, across the hard-to-abate industrial sectors, where decarbonization remains particularly challenging, at national, European, and global levels. This initiative also recognizes the excellence of Italy's specialized supply chain in the manufacturing sector, which plays a key role in the production of the component technology used for the construction of the pilot plant,' explains Cristina Tomassini, Head of Green Transition Fund of CDP Venture Capital. TDK Ventures, the corporate venture capital arm of TDK, a world leader in electronic solutions, will facilitate access to TDK's electronics expertise and products as well as its extensive network of industrial partners, substantially accelerating the company's technology development and commercialization efforts. "TDK Ventures is proud to back Tulum Energy. The company's groundbreaking turquoise hydrogen process, built on an ingenious repurposing of mature industrial technology, offers a uniquely scalable and cost-effective pathway to decarbonize heavy industries which represent very large end markets. We are excited to leverage our global network to accelerate Tulum Energy's technology development and commercialization and help the company become a cornerstone of the clean hydrogen economy," says David Delfassy, Investment Director at TDK Ventures. With the global demand for hydrogen in existing industrial applications projected to at least double in the coming decades, and industries worldwide urgently seeking cost-effective decarbonization pathways, Tulum Energy is poised to offer a viable, scalable, and economically compelling alternative to traditional hydrogen production methods. About Tulum Energy Tulum Energy is a leading climate-tech startup pioneering advanced methane pyrolysis technology for clean hydrogen production in heavy industrial applications. Built by TechEnergy Ventures, the company is dedicated to providing a scalable, efficient, and cost-effective alternative to conventional hydrogen production. Tulum Energy is committed to helping industries decarbonize while simultaneously unlocking new value through the commercialization of valuable solid carbon co-products.
Yahoo
5 days ago
- Business
- Yahoo
Tulum Energy rediscovered a forgotten hydrogen tech and used it to raise $27M
It was a mistake that was ahead of its time. Between 2002 and 2005, engineers with the Techint Group were trying to dial in a new electric arc furnace for a steelmaker when they noticed something odd. The carbon electrodes, rather than breaking down, were growing larger. The team had inadvertently created what's known as a pyrolysis reaction, which is basically burning something in the absence of oxygen. In this case, the furnace was splitting methane into pure hydrogen and pure carbon. The team reported their discovery internally and then, basically, forgot about it. 'Back then, nobody cared because nobody cared about methane pyrolysis, about hydrogen,' Massimiliano Pieri, CEO of Tulum Energy, told TechCrunch. The experiment was largely forgotten for the next 20 years. But a couple of years ago, investors for the Techint Group's corporate VC arm, TechEnergy Ventures, were scouring the landscape for new ways to produce hydrogen from methane without the usual pollution. Techint's investors didn't have to look far. 'Someone in the company realized, 'But we already have that. We have this discovery,'' Pieri said. So the conglomerate dusted off the idea and spun out Tulum to turn the accidental discovery into a viable business. Recently, Tulum closed an oversubscribed $27 million seed round led by TDK Ventures and CDP Venture Capital, the company exclusively told TechCrunch. Doral Energy-Tech Ventures, MITO Tech Ventures, and TechEnergy Ventures participated. Tulum isn't the only startup pursuing methane pyrolysis as a way to produce hydrogen. Modern Hydrogen, Molten Industries, and Monolith are among Tulum's competitors. The reaction has attracted attention for its ability to produce hydrogen from cheap, widely available natural gas without any carbon dioxide emissions. In pyrolysis, methane is broken down in the absence of oxygen, the only products are hydrogen gas and a dust of solid carbon, both of which can be sold. But Tulum differs in a few ways. For one, it doesn't need to use expensive catalysts to encourage the pyrolysis reaction, which some of its competitors require. In its use of the electric arc furnace, Tulum is also using a widely used — if modified — technology. 'This gives you a big head start,' Pieri said. Tulum will use the seed funding to build a pilot plant in Mexico alongside an existing Techint Group steel plant. If all goes well, the steel plant could buy hydrogen and carbon directly from Tulum for use in its operations. Pieri said that at full-scale production, a commercial plant would generate two tons of hydrogen and 600 tons of carbon per day. Tulum is hoping its commercial scale plant will produce one kilogram of hydrogen for about $1.50 in the U.S., where electricity and natural gas are both cheap. At that price, it's just 50 cents more than most hydrogen made from natural gas today, and it significantly undercuts some of the leading green hydrogen methods. That's before the company sells any carbon that its process generates. Not bad for an almost forgotten mistake. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
TechCrunch
5 days ago
- Business
- TechCrunch
Tulum Energy rediscovered a forgotten hydrogen tech and used it to raise $27M
It was a mistake that was ahead of its time. Between 2002 and 2005, engineers with the Techint Group were trying to dial in a new electric arc furnace for a steelmaker when they noticed something odd. The carbon electrodes, rather than breaking down, were growing larger. The team had inadvertently created what's known as a pyrolysis reaction, which is basically burning something in the absence of oxygen. In this case, the furnace was splitting methane into pure hydrogen and pure carbon. The team reported their discovery internally and then, basically, forgot about it. 'Back then, nobody cared because nobody cared about methane pyrolysis, about hydrogen,' Massimiliano Pieri, CEO of Tulum Energy, told TechCrunch. The experiment was largely forgotten for the next 20 years. But a couple of years ago, investors for the Techint Group's corporate VC arm, TechEnergy Ventures, were scouring the landscape for new ways to produce hydrogen from methane without the usual pollution. Techint's investors didn't have to look far. 'Someone in the company realized, 'But we already have that. We have this discovery,'' Pieri said. So the conglomerate dusted off the idea and spun out Tulum to turn the accidental discovery into a viable business. Recently, Tulum closed an oversubscribed $27 million seed round led by TDK Ventures and CDP Venture Capital, the company exclusively told TechCrunch. Doral Energy-Tech Ventures, MITO Tech Ventures, and TechEnergy Ventures participated. Techcrunch event Save $450 on your TechCrunch All Stage pass Build smarter. Scale faster. Connect deeper. Join visionaries from Precursor Ventures, NEA, Index Ventures, Underscore VC, and beyond for a day packed with strategies, workshops, and meaningful connections. Save $450 on your TechCrunch All Stage pass Build smarter. Scale faster. Connect deeper. Join visionaries from Precursor Ventures, NEA, Index Ventures, Underscore VC, and beyond for a day packed with strategies, workshops, and meaningful connections. Boston, MA | REGISTER NOW An illustration shows Tulum Energy's pilot plant. Image Credits:Tulum Energy Tulum isn't the only startup pursuing methane pyrolysis as a way to produce hydrogen. Modern Hydrogen, Molten Industries, and Monolith are among Tulum's competitors. The reaction has attracted attention for its ability to produce hydrogen from cheap, widely available natural gas without any carbon dioxide emissions. In pyrolysis, methane is broken down in the absence of oxygen, the only products are hydrogen gas and a dust of solid carbon, both of which can be sold. But Tulum differs in a few ways. For one, it doesn't need to use expensive catalysts to encourage the pyrolysis reaction, which some of its competitors require. In its use of the electric arc furnace, Tulum is also using a widely used — if modified — technology. 'This gives you a big head start,' Pieri said. Tulum will use the seed funding to build a pilot plant in Mexico alongside an existing Techint Group steel plant. If all goes well, the steel plant could buy hydrogen and carbon directly from Tulum for use in its operations. Pieri said that at full-scale production, a commercial plant would generate two tons of hydrogen and 600 tons of carbon per day. Tulum is hoping its commercial scale plant will produce one kilogram of hydrogen for about $1.50 in the U.S., where electricity and natural gas are both cheap. At that price, it's just 50 cents more than most hydrogen made from natural gas today, and it significantly undercuts some of the leading green hydrogen methods. That's before the company sells any carbon that its process generates. Not bad for an almost forgotten mistake.
