JERA has invested in US-based natural hydrogen explorer Koloma, through its corporate venture capital arm, JERA Ventures, as the energy giant steps up efforts to assess the potential of a largely untapped source of low-carbon energy.
The investment will give JERA deeper insight into Koloma’s approach to natural hydrogen exploration and development, supporting its efforts to evaluate the fuel’s potential as a future energy source.
Headquartered in Denver, Colorado, Koloma uses proprietary geological data, specialised exploration tools and field experience to identify and assess potential natural hydrogen deposits. The company has raised more than US$400 million from investors, including Breakthrough Energy Ventures, Khosla Ventures and Amazon.
Natural hydrogen, found beneath the Earth’s surface, is attracting growing interest as a potential source of low-carbon energy. Unlike manufactured hydrogen, which can require substantial energy inputs to produce, natural hydrogen occurs underground and could potentially be extracted directly.
If commercially viable deposits can be identified and developed at scale, the resource could provide a lower-cost source of low-carbon hydrogen without the energy-intensive production processes associated with conventional methods.
The scale of the potential resource is enormous. The US Geological Survey has estimated that approximately 5.6 trillion tonnes of natural hydrogen may exist underground worldwide. However, only a fraction is expected to be technically or economically recoverable.
Despite natural hydrogen discoveries in various parts of the world, commercially viable, large-scale resources have yet to be established — leaving exploration companies racing to determine whether the resource can be developed into a practical energy supply.
For JERA, the investment forms part of a broader push to explore emerging technologies that could strengthen energy security while accelerating decarbonisation.
By partnering with innovative companies, JERA is seeking to identify new options for building a reliable, lower-carbon energy system. Its investment in Koloma will provide an opportunity to better understand the challenges and possibilities of natural hydrogen as the sector works to establish its commercial potential.
