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Development Deal Will Provide Hydrogen for California Data Centers

Development Deal Will Provide Hydrogen for California Data Centers

Vema Hydrogen, developer of a sustainable hydrogen production technology, said it has entered a hydrogen purchase and sale agreement with Verne, a provider of on-site power and cooling solutions. Verne will leverage Vema’s clean energy, known as Engineered Mineral Hydrogen (EMH), to provide low-emission power for its data center customers. The companies on December 16 said operations could begin as soon as 2028.

The groups said that the deal demonstrates the demand for EMH in California, and said commercial traction is underway in the high-growth data center sector. With data center energy consumption expected to double by 2030, the industry is focused on finding new energy sources for the roughly 945 terawatt-hours needed, according to the companies.

“Artificial intelligence is driving unprecedented demand for power, and the industry desperately needs scalable solutions like Vema’s Engineered Mineral Hydrogen,” said Ted McKlveen, Verne co-founder and CEO. “We are excited to partner with Vema to offer our data customers a solution that meets not only their rising power needs, but also their sustainability goals.”

Vema will increase production to more than 36,000 metric tons per year of EMH over the course of the 10-year agreement. Through this project, the two companies are establishing a framework to supply reliable and affordable clean power to Verne’s data center customers based on Vema’s clean hydrogen supply.

Vema’s proprietary technology uses geoscience to create high-purity, sustainable hydrogen from naturally occurring reactions below the Earth’s surface, positioning the company to meet gigawatt-scale energy demands. This partnership expands Vema’s presence in California, following the company’s recent recognition as a qualified supplier by The First Public Hydrogen Authority (FPH2) to supply clean hydrogen to FPH2’s network across the state.

“There is a robust market for baseload power generation across the U.S., where data centers are straining the grid,” said Pierre Levin, CEO of Vema Hydrogen. “With our Engineered Mineral Hydrogen and Verne’s power solutions, data centers will have access to affordable, clean power that is not dependent on state or federal incentives. As we power California’s fastest-growing markets with clean hydrogen, we look toward expanding our hydrogen to markets globally and supporting AI-driven power hubs.”

Vema Hydrogen is a U.S. producer of low-carbon hydrogen. The company’s technology, Engineered Mineral Hydrogen (EMH), harnesses naturally occurring chemical reactions below the Earth’s surface to produce high-purity sustainable hydrogen. The company said by applying geoscience to de-risk production and ensure predictable, cost-competitive output, it makes clean hydrogen a viable solution for large-scale industrial energy and baseload power needs.

Verne develops innovative power and cooling solutions for the industrial base: data center campuses, edge compute sites, and more. Verne is supported by Amazon’s Climate Pledge Fund, Breakthrough Energy Fellows, Caterpillar VC, NextEra Energy Resources, United Airlines Ventures Sustainable Flight Fund, Collaborative Fund, ARPA-E, the U.S. Army, and other organizations.

POWER edited this content, which was contributed by Mission Control Communications.