Tulum Energy secures $27 million to develop turquoise hydrogen technology

Tulum Energy, a methane pyrolysis startup, has raised $27 million in venture funding to support the development and scaling of its hydrogen production technology. The round was led by CDP Venture Capital through its Green Transition Fund, alongside TDK Ventures and a group of international investors including TechEnergy Ventures, MITO Technology, and Doral Energy Tech Ventures.

The funding will be used to construct a pilot facility in Pesquería, Mexico, in partnership with steel producer Ternium. Tulum also plans to establish a subsidiary in Milan to lead engineering and R&D activities, drawing on Italy’s industrial supply chain.

Tulum’s process, based on methane pyrolysis, aims to produce low-emission “turquoise” hydrogen by splitting methane into hydrogen and solid carbon without generating CO₂. The company’s approach involves repurposing existing industrial equipment—particularly electric arc furnaces—originally developed for the steel industry.

CEO Massimiliano Pieri emphasized the scalability and energy efficiency of the technology, which is intended to supply large industrial hydrogen users such as chemical plants and refineries at competitive costs.

The technology stems from a partnership between TechEnergy Ventures and industrial equipment provider Tenova. Tenova contributed early-stage technical expertise and will support deployment by providing access to its industrial customer base.

CDP Venture Capital’s investment aims to strengthen Italy’s position in clean tech manufacturing and help scale hydrogen production solutions aligned with European green transition goals. TDK Ventures will provide technological support and market access through its global industrial network.

The hydrogen market is expected to grow significantly in the coming decades, particularly in sectors where electrification remains difficult. Tulum’s methane pyrolysis process is positioned as a cost-effective alternative to traditional green and blue hydrogen technologies.

Source and Photo: Tulum Energy