Clean hydrogen innovator Tulum secures $27M to scale breakthrough methane pyrolysis technology

Tulum Energy, a forward-thinking startup specialising in methane pyrolysis, has just closed a $27 million venture financing round. The round was led by CDP Venture Capital through its Green Transition Fund and TDK Ventures, with participation from a global group of prominent investors. These include TechEnergy Ventures, Tulum’s founder, MITO Technology via its MITO Tech Ventures fund, and Doral Energy Tech Ventures. The investment signals strong confidence in Tulum Energy’s unique approach to clean hydrogen production.

At its core, Tulum Energy is developing a breakthrough technology for methane pyrolysis. This chemical process allows for the production of clean, or "turquoise," hydrogen and solid carbon from natural gas or biogas, all without emitting CO2. "The distinguishing feature of our technology is its unmatched combination of high scalability and exceptional energy efficiency," states Massimiliano Pieri, CEO of Tulum Energy. "This allows us to meet the substantial demands of large industrial consumers of hydrogen, such as refineries, ammonia producers, and chemical plants — at truly competitive costs, even without relying on tax credits and incentives."

Pieri elaborates, "The core innovation lies in the repurposing of existing, commercially available machinery from the steelmaking industry to produce turquoise hydrogen. We are essentially readapting an electric arc furnace as a high-temperature heat source to crack methane molecules, yielding clean hydrogen and valuable solid carbon, rather than smelting iron."

Proceeds from this Seed funding round will be strategically directed toward the construction of the company’s pilot plant in Pesquería, Mexico, located within the industrial complex of Ternium, a leading steel producer in the Americas. "Ternium is the perfect partner to host our initial operations," adds Pieri. "They have an interest in utilising our hydrogen for direct reduced iron (DRI) production, and they possess the robust infrastructure we need for seamless scaling."

By sidestepping the economic and infrastructure challenges that currently limit green and blue hydrogen, methane pyrolysis opens up a more viable path for industrial-scale decarbonization.

The story behind Tulum Energy begins with TechEnergy Ventures, the corporate venture capital arm of Tecpetrol. They didn’t just fund the company—they built it from the ground up. Drawing inspiration from Tenova, a global industrial technology leader known for its electric arc furnaces and hydrogen-ready direct-reduced iron (DRI) technologies, TechEnergy Ventures saw an opportunity. In 2022, they partnered strategically with Tenova to bring the concept to life as a fully operational company. From securing intellectual property to assembling the core team and shaping the initial business plan, they laid the foundation for what Tulum has become today. "Having a CVC with venture building capabilities allowed us to adopt an investor mindset from day one, enabling us to build a company that would be highly attractive for global investors from the get-go," explains Alejandro Solé, CIO of TechEnergy Ventures.

“We started working with the concept of repurposing an electric arc furnace as a result of in-house experiments and our deep knowledge of EAFs,” explains Paolo Argenta, EVP of Tenova’s Upstream Business Unit.

Pieri emphasises the company's accelerated roadmap: "Because we leverage existing components and an established supply chain from Tenova, our technological and commercial journey will be exceptionally time and capital-efficient. Following the Pilot, we will directly proceed to building our first full-scale commercial plant."

CDP Venture Capital, part of the Cassa Depositi e Prestiti Group and one of Italy’s largest asset managers, played a central role in this funding round. Its Green Transition Fund, backed by EU resources through the NextGenerationEU initiative, is focused on accelerating innovation within the green economy. The goal of this investment is not just to support Tulum’s growth but to help establish a strong Italian presence. This includes enhancing the local manufacturing supply chain and advancing research and development capabilities. With CDP’s involvement, Tulum Energy gains not only immediate support but also better access to future capital and long-term financial stability.

"Tulum Energy's scalable and efficient methane pyrolysis technology is a game-changer for industrial decarbonization. Our investment fully reflects our mission and our commitment to innovative solutions that drive the green transition across the hard-to-abate industrial sectors, where decarbonization remains particularly challenging at the national, European, and global levels. This initiative also recognises the excellence of Italy’s specialised supply chain in the manufacturing sector, which plays a key role in the production of the component technology used for the construction of the pilot plant,” explains Cristina Tomassini, Head of Green Transition Fund of CDP Venture Capital.

TDK Ventures, the corporate venture capital arm of TDK, a world leader in electronic solutions, will facilitate access to TDK’s electronics expertise and products as well as its extensive network of industrial partners, substantially accelerating the company's technology development and commercialisation efforts. "TDK Ventures is proud to back Tulum Energy. The company’s groundbreaking turquoise hydrogen process, built on an ingenious repurposing of mature industrial technology, offers a uniquely scalable and cost-effective pathway to decarbonise heavy industries, which represent very large end markets. We are excited to leverage our global network to accelerate Tulum Energy's technology development and commercialisation and help the company become a cornerstone of the clean hydrogen economy," says David Delfassy, Investment Director at TDK Ventures.

The timing couldn't be more crucial. Global demand for hydrogen across industrial sectors is expected to double over the next few decades, and companies worldwide are racing to find scalable, cost-effective ways to reduce emissions. Tulum Energy’s methane pyrolysis offers a promising, scalable solution, one that can revolutionise the production and utilisation of hydrogen at an industrial level.

About Tulum Energy:

Tulum Energy is a climate-tech company pioneering advanced methane pyrolysis for clean hydrogen production, specifically designed for the heavy industry sector. Founded by TechEnergy Ventures, the company offers a scalable and economically viable alternative to conventional hydrogen methods, while also generating new value through its solid carbon by-products. Its mission is to drive industrial decarbonization without compromising on efficiency or cost.