Scoop: Hestia Energy raising $12M for geologic hydrogen

Scoop: Hestia Energy raising $12M for geologic hydrogen

Hestia Energy, which aims to discover natural hydrogen deposits beneath the Earth's surface, is raising $12 million in seed funding, Axios Pro has learned.

Why it matters: Geologic hydrogen startups have not yet produced the fuel at scale.

The big picture: Hestia's focus, for now, is on exploration.

  • The company plans to leverage software and technical expertise to find naturally occurring hydrogen deposits, a source tells Axios Pro. It will leave production to others initially.

    • Flashback: Koloma raised $245 million in Series B funding in 2024 when geologic hydrogen was briefly a hot sector.

  • Geologic hydrogen startups declared they could find and develop enormous, clean-burning hydrogen deposits much like oil and gas that would offer an alternative to expensive hydrogen production methods.

    • Yes, but: Little has come of the efforts.

  • No company has achieved sustained hydrogen production, and the gas is notoriously hard to transport, requiring expensive trucks or new pipelines.

    • What we're watching: Eyes will be on whether Hestia hits its fundraising target, who buys in, and ultimately what it achieves.

    Behind the scenes: The San Francisco-based startup is being led by CEO Allen Zhao and CTO Stuart Farris, former engineers at The Moonshot Factory — Alphabet's skunkworks division.

    Hestia Energy declined to comment.