Tulum Energy Raises $27M with Rediscovered Hydrogen Technology

An Accidental Breakthrough in Hydrogen Production

An unforeseen error, remarkably ahead of its time, has resurfaced as a promising solution in the energy sector.

Between 2002 and 2005, engineers from the Techint Group, while commissioning a new electric arc furnace for a steel manufacturing client, observed an unusual phenomenon. Instead of degrading as expected, the carbon electrodes were actually increasing in size.

The Discovery of Pyrolysis

The team had unintentionally initiated a pyrolysis reaction – essentially, combustion occurring without the presence of oxygen. Specifically, the furnace was effectively separating methane into its constituent elements: pure hydrogen and pure carbon.

This discovery was initially documented internally, but subsequently remained largely dormant for two decades.

“At the time, there wasn’t significant interest in methane pyrolysis or hydrogen production,” explained Massimiliano Pieri, CEO of Tulum Energy, in an interview with TechCrunch.

Reviving a Forgotten Technology

However, several years ago, investors within Techint Group’s corporate venture capital division, TechEnergy Ventures, began exploring innovative methods for producing hydrogen from methane while minimizing environmental impact.

The solution was already within the company’s history. “An individual within the organization realized we had already achieved this breakthrough,” Pieri stated.

Consequently, the conglomerate revitalized the original research and established Tulum Energy to commercialize this accidental finding.

Recently, Tulum successfully concluded an oversubscribed seed funding round of $27 million, spearheaded by TDK Ventures and CDP Venture Capital, as exclusively reported to TechCrunch. Additional participation came from Doral Energy-Tech Ventures, MITO Tech Ventures, and TechEnergy Ventures.

Competition and Differentiation

Tulum is not alone in pursuing methane pyrolysis for hydrogen production. Companies like Modern Hydrogen, Molten Industries, and Monolith are also actively involved in this field.

The appeal of this reaction lies in its potential to generate hydrogen from readily available and inexpensive natural gas, all without producing carbon dioxide emissions. The process breaks down methane without oxygen, yielding hydrogen gas and solid carbon, both of which have marketable value.

However, Tulum distinguishes itself by eliminating the need for costly catalysts, which are required by some competitors to facilitate the pyrolysis reaction.

Furthermore, Tulum leverages a modified, yet widely implemented, technology – the electric arc furnace – providing a significant advantage.

“This provides a substantial initial lead,” Pieri emphasized.

Pilot Plant and Future Production

The seed funding will be allocated to the construction of a pilot plant in Mexico, integrated with an existing Techint Group steel facility.

Ideally, the steel plant will procure both hydrogen and carbon directly from Tulum for use in its operational processes.

Pieri anticipates that a full-scale commercial plant will be capable of producing 200 tons of hydrogen and 600 tons of carbon daily.

Cost Competitiveness

Tulum projects a production cost of approximately $1.50 per kilogram of hydrogen in the U.S., assuming favorable electricity and natural gas prices.

This price point is only marginally higher – by 50 cents – than conventional hydrogen production from natural gas and significantly lower than many current green hydrogen technologies.

These figures do not even factor in revenue generated from the sale of the carbon byproduct.

A remarkable outcome stemming from what was once considered a simple oversight.

Note: A correction has been made regarding Tulum’s commercial plant production capacity, which is 200 tons of hydrogen per day, not two.