Archive — US — techcrunch
Vema predicts cheap hydrogen could change where data centers are built
Vema Hydrogen's innovative approach to producing hydrogen from subterranean iron-rich rock could significantly reduce costs, making hydrogen an economically viable energy source for data centers, especially in California. Vema aims to produce hydrogen for under $1 per kilogram, leveraging local geology, and potentially transforming energy sourcing for data centers.
Key points
- Vema Hydrogen has completed a pilot project in Quebec for hydrogen production.
- The company produces hydrogen by treating deep underground rocks with water, heat, and catalysts.
- The pilot well is expected to produce several tons of hydrogen daily, with plans for commercial production starting next year.
- Hydrogen prices from Vema are projected to be under $1 per kilogram, much lower than traditional methods.
- Traditional hydrogen production methods release carbon dioxide; Vema's method is significantly cleaner.
Why it matters
- The rise of green hydrogen production aligns with global trends towards sustainable energy solutions.
- In 2025, the demand for decarbonized energy sources will be critical as industries focus on reducing carbon footprints.
- Vema’s model can potentially influence the location and energy sourcing of data centers as the industry seeks greener alternatives.
Vema Hydrogen's pioneering method of producing cost-effective, clean hydrogen could redefine energy sourcing for data centers, positioning them to operate sustainably while maintaining economic viability in a rapidly evolving tech landscape.