Bill Gates-backed startup says a global gold rush for buried hydrogen is picking up momentum

A Bill Gates-backed startup claims a global surge in interest for geologic hydrogen is rapidly gaining traction. Koloma, a U.S.-based clean energy startup, funded by Bill Gates and Jeff Bezos, is leveraging expertise traditionally used in the hydrocarbon industry to fuel what’s being called a “gold rush” for buried hydrogen. The rise in attention surrounding this underutilized resource, known as geologic hydrogen or “white hydrogen,” has sparked excitement for its potential in driving the shift away from fossil fuels. Koloma’s CEO Pete Johnson explains that geologic hydrogen represents a unique exploration and production opportunity, allowing the company to capitalize on the skills and infrastructure of the oil and gas sectors to quickly scale this carbon-free energy source. By adapting existing technologies and service providers, the startup aims to accelerate industry development.

Having raised over $305 million since its inception, Koloma has attracted a broad range of investors, including Khosla Ventures, Amazon’s Climate Pledge Fund, United Airlines, and Bill Gates’ Breakthrough Energy Ventures. Prominent backers like Ray Dalio, Richard Branson, and Jack Ma further underscore the market’s belief in this resource’s transformative potential. Dubbed a potential “gamechanger” by analysts at Rystad Energy, geologic hydrogen could revolutionize the energy transition by offering a low-carbon solution with minimal environmental footprint. Exploration is already underway in the U.S., Canada, Australia, and Europe, with hopes that untapped reserves can play a pivotal role in reducing reliance on fossil fuels. Johnson highlights the benefits of geologic hydrogen as a primary energy source, with a smaller carbon footprint, reduced land use, and lower water demands. Additionally, he points out that this resource could enable the U.S. to scale domestic ammonia production, positioning the country as a major exporter while reducing the carbon impact of fertilizers.

Despite the enthusiasm, challenges remain. While geologic hydrogen’s long-term potential is vast, some industry experts caution against overhyping its current capabilities, citing environmental concerns and logistical hurdles around extraction and distribution. However, Koloma is confident, with substantial financial backing and a strategic approach to navigating the sector’s complexities. According to Johnson, the company is well-positioned to tackle these roadblocks, with support from a diverse group of investors who are either focused on the technology, potential resource discovery, or low-carbon derivative products that could leverage geologic hydrogen’s advantages. Though hurdles remain, Koloma’s ambitious efforts and growing industry momentum could help unlock geologic hydrogen’s promise as a future cornerstone of clean energy.

Asset Managers Are Now Investing in Once-Shunned Nuclear Stocks

Asset managers are now turning their attention to nuclear energy stocks, a sector long avoided by investors with environmental mandates, betting that the once-shunned industry is poised for a comeback. Major firms such as Robeco Institutional Asset Management, J O Hambro Capital Management, and Janus Henderson Investors are reconsidering their stance on nuclear energy, recognizing its role in achieving global net-zero emissions targets. Chris Berkouwer, lead manager for Robeco’s Net Zero 2050 Climate Equities fund, remarked that while the firm had previously taken an exclusionary approach, it’s now clear that nuclear energy is “an indispensable part” of the transition away from fossil fuels. The inclusion of nuclear energy in environmentally-friendly portfolios is sparking debate. Critics highlight concerns about nuclear waste, uranium supply, and the risks posed by geopolitical events, such as Russia’s seizure of Ukraine’s Zaporizhzhia nuclear power plant. Proponents, however, argue that nuclear power is emissions-free and highly efficient, producing vast amounts of electricity with minimal fuel. In fact, nuclear power is the largest source of clean energy in countries like the U.S., France, and South Korea.

In the European Union, heavy lobbying by France helped include nuclear energy in the bloc’s green taxonomy in 2022. The growing demand for energy, especially to power the expanding AI-driven data centers, has also elevated nuclear’s importance. BlackRock Investment Institute sees nuclear energy as essential for supporting the AI revolution, with portfolio manager Alastair Bishop noting the profound implications for the power market as AI adoption skyrockets. Fund managers are also eyeing opportunities in uranium mining and nuclear technology companies. For example, J O Hambro has been investing in uranium miner Cameco Corp., whose stock has surged 80% since early 2022. Other companies in the nuclear space, such as Constellation Energy Corp., BWX Technologies Inc., and NuScale Power Corp., have seen significant stock gains as well, reflecting growing investor interest.

The International Energy Agency projects that global nuclear capacity must double by mid-century to meet net-zero targets, underscoring the sector’s critical role in the energy transition. However, the industry still faces cost challenges, as nuclear plants require massive capital investment and often take longer to build than renewable energy facilities. Nonetheless, small modular reactors (SMRs) are being touted as a cost-effective solution, with the potential to change public perception of nuclear energy. Despite the hurdles, asset managers are optimistic about nuclear’s potential. As Berkouwer notes, there are stringent checks in place for selecting nuclear investments, especially regarding safety and geopolitical risks. With increasing interest in uranium mining, SMRs, and advanced nuclear technologies, the sector is positioning itself as a key player in the future of clean energy.