Japan's JERA backs Koloma, the natural hydrogen startup that's raised $400M+
What's the deal? JERADealroom has a profile for this one. Try Dealroom →, Japan's largest power generation company, has invested in Koloma, a Denver-based natural hydrogen exploration and development startup. The deal was made through JERA VenturesDealroom has a profile for this one. Try Dealroom →, the corporate venture arm that holds a strategic investment capacity of $300 million. The amount JERA committed was not disclosed.
What does Koloma do? It uses proprietary geological data, specialised exploration tools, and field experience to identify and evaluate prospective natural hydrogen resources. The company has raised more than $400 million from backers including Breakthrough Energy VenturesDealroom has a profile for this one. Try Dealroom →, Khosla Ventures, and Amazon.
Why natural hydrogen? Unlike manufactured hydrogen, which needs significant energy to produce, natural hydrogen occurs underground and can potentially be extracted directly. That could make it a lower-cost source of low-carbon hydrogen — if commercially viable resources can be found and developed at scale.
What's the endgame? For JERA, the investment is a way to deepen its understanding of natural hydrogen's potential as a future low-carbon energy source. The company produces one-third of Japan's electricity and aims to reach net-zero CO₂ emissions across its businesses by 2050.
What could go wrong? The resource is largely unproven. The US Geological Survey estimates roughly 5.6 trillion tonnes of natural hydrogen may exist globally, but only a fraction is expected to be technically or economically recoverable. Deposits have been identified worldwide, yet no commercial-scale resource has been established.
The signal: A major fossil-fuel-heavy utility placing an early bet on a speculative resource shows how incumbents are hedging their energy transition. For JERA, backing emerging technologies like natural hydrogen is a route to both energy security and decarbonisation.
Read more: jera.co.jp
