In the early 2000s, engineers at the Techint Group were fine-tuning an electric arc furnace for steel production when they observed an unexpected phenomenon: instead of degrading, the carbon electrodes were increasing in size. This anomaly was later identified as a pyrolysis reaction, where methane was decomposed into pure hydrogen and solid carbon in the absence of oxygen. At the time, the significance of this discovery was overlooked, and the findings were archived and largely forgotten.
Fast forward two decades, and the landscape has shifted dramatically. With the global push towards sustainable energy solutions, hydrogen has emerged as a pivotal element in the transition to cleaner fuels. Recognizing the potential of their earlier discovery, Techint Group revisited the archived data. Massimiliano Pieri, CEO of Tulum Energy, recounted, Someone in the company realized, ‘But we already have that. We have this discovery.’
This realization led to the formation of Tulum Energy, a startup dedicated to commercializing the methane pyrolysis process. The company recently announced the successful closure of an oversubscribed $27 million seed funding round. The round was led by TDK Ventures and CDP Venture Capital, with participation from Doral Energy-Tech Ventures, MITO Tech Ventures, and TechEnergy Ventures.
Methane pyrolysis offers a method to produce hydrogen from natural gas without emitting carbon dioxide. The process involves breaking down methane molecules into hydrogen gas and solid carbon, both of which have commercial value. Unlike traditional methods that release significant CO₂ emissions, pyrolysis captures carbon in a solid form, mitigating environmental impact.
Tulum Energy distinguishes itself from competitors like Modern Hydrogen, Molten Industries, and Monolith in several ways. Notably, Tulum’s process does not require expensive catalysts to facilitate the reaction. Additionally, by utilizing a modified electric arc furnace—a technology already prevalent in the steel industry—Tulum leverages existing infrastructure, providing a strategic advantage. Pieri emphasized, This gives you a big head start.
The newly acquired funding will be directed towards constructing a pilot plant in Mexico, adjacent to an existing Techint Group steel facility. This proximity allows for seamless integration, with the steel plant potentially sourcing hydrogen and carbon directly from Tulum for its operations. Pieri projected that a full-scale commercial plant could produce 200 tons of hydrogen and 600 tons of carbon daily.
Economically, Tulum aims to produce hydrogen at approximately $1.50 per kilogram in the U.S., where both electricity and natural gas are relatively inexpensive. This price point is competitive, being only 50 cents higher than conventional hydrogen production methods that rely on natural gas and emit CO₂. Moreover, it significantly undercuts some leading green hydrogen production techniques. These figures do not account for potential revenue from the sale of solid carbon byproducts, which could further enhance profitability.
The resurgence of interest in hydrogen technologies is evident across the industry. For instance, Techint Group has invested $25 million in developing turquoise hydrogen through methane pyrolysis, aiming to establish a more sustainable hydrogen variant. Similarly, startups like C-Zero are raising substantial funds to produce emission-free hydrogen using natural gas, highlighting the sector’s momentum.
Tulum Energy’s journey from an overlooked laboratory observation to a promising startup underscores the importance of revisiting past discoveries in the context of current technological and environmental challenges. As the world seeks cleaner energy solutions, innovations like methane pyrolysis could play a crucial role in shaping a sustainable future.
