Cemvita Factory announcement multiple developments with its Gold Hydrogen activity. Cemvita defines Gold Hydrogen as the biological production of hydrogen underground through the consumption of trapped or abandoned resources. Gold Hydrogen is a new source of carbon-neutral hydrogen produced from depleted oil reservoirs that are ready to be capped and abandoned, extending the life of wells that would otherwise be a significant burden.

After achieving a key milestone in the microbial performance required to produce hydrogen at $1/kg in the laboratory, Cemvita has successfully completed a field pilot program with positive results. Following successful field trial results, Cemvita established a wholly owned subsidiary for the Gold Hydrogen business, Gold H2 LLC (GH2), then raised and closed funding for the entity, led by the founding investors Chart Industries and 8090 Industries.

Cemvita scientists increased the performance of the microbes to six and a half times the rate needed to produce hydrogen at $1/kg, a key step needed to move the program towards commercialization. The subsequent field test was carried out in the Permian Basin with a partner company, where the team successfully measured hydrogen concentrations three orders of magnitude above the baseline.

In a very short time, we moved our microbes from the lab to the field. Hydrogen production in this trial exceeded our expectations. As we continue to use hydrogen-producing microbes downhole, we anticipate that we will be able to achieve rates that result in hydrogen production of $1/kg or less.

—Zach Broussard, Director of Gold H2 at Cemvita

Traditional methods of producing hydrogen without greenhouse gas emissions (green hydrogen) include electrolysis powered by renewable sources such as wind, solar or hydroelectricity. According to recent studies, the global green hydrogen market size was valued at USD 0.3 billion in 2020. It is growing at a CAGR of 54.7% from 2021 to 2028 and is projected to reach USD 9.8 billion. US dollars by 2028.

However, the production of green hydrogen is energy-intensive and expensive. According to a report by S&P Global Commodity Insights, the cost of electrolytic hydrogen from renewable energy reached $16.80/kg at the end of July 2022. Because Cemvita plans to use existing infrastructure for thousands of oil wells and spent gases to produce cheap and clean products. , carbon-free hydrogen, the technology has the potential to be transformational in the energy transition, according to the company.

Source: Cemvita

After successful steps in the laboratory and in preparation for commercialization, Cemvita chose to create Gold H2 as a means of commercializing the business through a mix of licensing, joint venture structures and outright ownership of production assets. ‘hydrogen.

By deploying the business through a flexible subsidiary, we can effectively maximize the business value of the program to the parent company, Cemvita, through both licensing and growing the value of the program. company.

—Charles Nelson, Commercial Director of Cemvita

Cemvita Factory’s mission is to reinvent heavy industries such as oil, gas and mining for a net zero economy. This is done through the sustainable extraction of natural resources, the production of carbon negative chemicals and the closed-loop renewal of waste as raw material.