Hydrogen’s emerging role in powering digital infrastructure

Heavy industry and data centres, both under pressure to decarbonise while maintaining reliability, are emerging as  realistic early adopters.

One company exploring this shift is Vema Hydrogen, which is trialling a novel approach to hydrogen production that could significantly lower costs. After securing an agreement to supply hydrogen to data centres in California, the company has also completed a pilot project in Quebec, demonstrating how hydrogen produced underground could support industrial energy demand.

Rather than manufacturing hydrogen above ground, Vema targets naturally occurring reactions in iron-rich geological formations. By introducing water, heat and pressure into specific rock types, hydrogen gas is released and can be brought to the surface for use. The company argues this approach requires relatively little land, making it viable even in regions with competing demands on space.

Early results suggest promising economics. Vema’s pilot well is already producing hydrogen at a small scale, with plans for a deeper, commercial well next year. The company believes this method could deliver hydrogen at costs below widely referenced clean hydrogen targets, with further reductions possible as techniques mature.

Most hydrogen in use today is produced from natural gas through steam methane reforming. While established, that process is energy intensive and carbon emitting. Cleaner alternatives, such as electrolysis powered by renewable electricity, exist but often come at a much higher price. Cost remains one of the biggest barriers to scaling hydrogen across energy systems.

Geologically stimulated hydrogen, sometimes referred to as engineered mineral hydrogen, could change that equation. Research bodies, including academic energy institutes, have highlighted its potential as a low-emissions pathway if deployed responsibly and at scale.

Read more: Vema predicts cheap hydrogen could change where data centers are built