Tulum Energy, a spin-off from Techint Group, has raised US$27 million in seed funding to develop hydrogen production technology based on methane pyrolysis.

The round was led by TDK Ventures and CDP Venture Capital, with participation from Doral Energy-Tech Ventures, MITO Tech Ventures, and TechEnergy Ventures.

The technology was originally discovered by Techint engineers between 2002 and 2005 and uses an electric arc furnace to split methane into hydrogen and solid carbon without producing CO₂ emissions.

Tulum will use the funding to build a pilot plant in Mexico, next to a Techint steel plant.

The hydrogen and carbon dust byproducts may be used in the plant’s operations.

Tulum aims to eventually produce hydrogen at US$1.50 per kilogram in the US, leveraging low electricity and gas prices.

🔗 Source: TechCrunch

🧠 Food for thought

1️⃣ Rediscovering old tech addresses modern hydrogen economics

Tulum’s approach to hydrogen production sits at a critical economic inflection point for the industry.

Current hydrogen production costs vary dramatically by type: traditional “grey” hydrogen from natural gas costs $1-2/kg, “blue” hydrogen (with carbon capture) costs $1.50-3/kg, while green hydrogen from renewable-powered electrolysis costs $3-7/kg 1.

Tulum’s target price of $1.50/kg for their methane pyrolysis method would make it competitive with both grey and blue hydrogen while eliminating CO₂ emissions. This addresses the key challenge that the International Energy Agency has identified of bringing clean hydrogen costs down to $1.6-1.9/kg by 2030 2.

The timing is significant as global investment in low-emission hydrogen is expected to increase by 70% in 2025, reaching nearly $8 billion 2.

The rediscovery highlights how innovations sometimes arrive before their optimal market timing. What wasn’t economically viable in 2005 has become highly valuable in today’s decarbonization-focused energy landscape.

2️⃣ Methane pyrolysis leverages existing infrastructure for hydrogen transition

Tulum’s approach is particularly notable for its ability to utilize existing natural gas infrastructure while producing zero-carbon hydrogen.