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Tulum Energy Raises €22.9 Million to Accelerate Low-Carbon Hydrogen Production — A Breakthrough for Industrial Decarbonization
- HX
- Jul 9
- 3 min read
Milan, Italy – July 8, 2025 – Italian startup Tulum Energy has secured €22.9 million in Seed funding to scale its innovative low-carbon hydrogen production technology. The round was co-led by TDK Ventures, the investment arm of TDK Corporation, and CDP Venture Capital, with additional participation from Doral Energy-Tech Ventures, MITO Tech Ventures, and TechEnergy Ventures, the corporate venture capital arm of Techint Group. This funding marks a major step forward in delivering a scalable and cost-effective alternative to conventional hydrogen production.
Founded in 2024 as a spinout of Techint Group, Tulum Energy is redefining how hydrogen is produced by repurposing electric arc furnace (EAF) technology—traditionally used in steelmaking—for methane pyrolysis in a novel, non-catalytic configuration. This method enables the production of so-called "turquoise hydrogen," which significantly reduces carbon emissions without compromising efficiency or cost. Backed by Tenova, a Techint subsidiary specializing in EAFs, Tulum aims to bring clean hydrogen to market at a price comparable to grey hydrogen, while cutting greenhouse gas emissions by up to 95%.
The company’s leadership team includes CEO and Co-founder Massimiliano Pieri, formerly CEO of M2X Energy and an executive at Eni Next, and CTO Donald Kendrick, previously CTO at methane pyrolysis company Ekona. With their combined expertise in advanced energy technologies, the team is moving quickly to bring Tulum’s breakthrough to market. Their first major milestone will be a pilot plant in Pesquería, Mexico, located within the industrial complex of Ternium, a Latin American steel leader and part of the Techint Group.
Tulum’s approach addresses several longstanding challenges in the hydrogen sector. Most notably, its process is projected to be five times more energy efficient than the best green hydrogen alternatives, and it operates without the expensive catalysts typically required for methane pyrolysis. Additionally, the technology is designed for scalability, leveraging existing high-capacity EAF infrastructure to produce hydrogen at industrial volumes. The reduced land footprint—requiring eight times less space than green hydrogen plants—makes Tulum’s model ideal for on-site production, cutting down logistics costs and enhancing reliability for industrial users.
Why does this matter for the broader hydrogen industry? For one, cost has remained a major barrier to clean hydrogen adoption. Green hydrogen produced via electrolysis often requires expensive renewable energy inputs and government subsidies to be viable. Tulum Energy breaks through that ceiling, offering hydrogen at or below the cost of fossil-derived hydrogen—without relying on incentives or carbon credit sales. This could make clean hydrogen accessible in markets where green hydrogen remains economically or logistically unfeasible.
Moreover, the industrial sector—particularly steel, refining, and chemicals—is one of the hardest to decarbonize. These industries require large, consistent volumes of hydrogen, which green hydrogen projects struggle to supply at scale. Tulum’s EAF-based model, already tested at capacities exceeding 100 MW, is well-suited to meet these demands. With the ability to produce between 20 and 200 tons of hydrogen per day, Tulum is positioning itself as a cornerstone of future low-carbon industrial ecosystems.
As Nicolas Sauvage, President of TDK Ventures, put it: “Tulum’s innovative reactor could be a game-changer in geographies where green hydrogen is cost-prohibitive or logistically infeasible. Their technology offers superior energy efficiency, smaller land footprint, and compelling economics that meet the immediate needs of heavy industry.”
Tulum’s €22.9 million raise isn’t just a win for the startup—it’s a strong signal to the global hydrogen market that practical, scalable, and cost-effective alternatives to fossil hydrogen are emerging fast. As countries and industries rush to meet decarbonization goals, solutions like Tulum’s turquoise hydrogen may prove to be essential bridges between today’s infrastructure and tomorrow’s clean energy future.
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