Vema predicts cheap hydrogen could change where data centers are built

Vema, a startup specializing in producing hydrogen deep underground from iron-rich rocks, is pioneering a new method called stimulated geologic hydrogen or "engineered mineral hydrogen." By drilling wells into specific rock formations and treating them with water, heat, pressure, and catalysts, Vema extracts hydrogen gas for industrial use. The company recently completed a pilot project in Quebec and has secured a deal to supply hydrogen to California data centers. Vema’s CEO, Pierre Levin, highlighted that supplying the Quebec market would require only a small land footprint, and the first commercial well, planned for next year, will reach 800 meters deep. The company aims to produce hydrogen at less than $1 per kilogram, potentially dropping below 50 cents per kilogram with further refinement, making it cheaper and cleaner than most current hydrogen production methods. This innovation could significantly impact the location and energy sourcing of data centers, especially in regions like California, which have abundant iron-rich ophiolite rock formations. These formations could enable local, dec