TDK Ventures Invests in Tulum Energy to Advance Scalable Low-Carbon Hydrogen Production

SAN JOSE, Calif.--( BUSINESS WIRE )-- TDK Corporation (TSE: 6762) announced today that subsidiary TDK Ventures, Inc. has co-led the $27 million seed round of Tulum Energy, a pioneering startup producing clean hydrogen solutions for industrial applications through methane pyrolysis (aka: turquoise hydrogen) and by repurposing the designs of already mature industrial equipment. TDK Ventures’ investment will be used to accelerate the development of Tulum’s innovative clean hydrogen production technology, which leverages commercially available electric-arc plasma reactor technology to achieve cost parity with traditional hydrogen production methods, while also significantly reducing carbon emissions. With support from TDK Ventures and additional co-investment partners, Tulum expects to reach commercial operations directly following the first pilot and achieve hydrogen production costs matching or beating fossil fuel-based alternatives without relying on incentives or the sale of the potentially valuable carbon co-product.

Tulum, based in Milan, Italy, has been spun out of Techint Group, a global leader in steel, engineering, and energy. Tulum aims to commercialize a unique and scalable approach to hydrogen production, utilizing proven electric arc furnace (EAF) technology, commonly used in steel production at capacities of over 100 megawatts, in a novel configuration for producing hydrogen. With deep technical backing from Tenova, Techint’s subsidiary that produces EAFs, Tulum is positioned to deliver hydrogen at levelized costs comparable to conventional grey hydrogen, while achieving up to 95% reduction in greenhouse-gas emissions.

“Tulum’s innovative reactor could be a game-changer in geographies where green hydrogen is cost-prohibitive or logistically infeasible,” said Nicolas Sauvage, President of TDK Ventures. “Their technology offers superior energy efficiency, smaller land footprint, and compelling economics that meet the immediate needs of heavy industry. By harnessing the potential of turquoise hydrogen, Tulum is well positioned to decarbonize heavy industry and create a more sustainable future for generations to come.”

Tulum's unique approach to hydrogen generation is designed to overcome the high costs and infrastructure challenges currently faced by alternative clean hydrogen solutions such as green-hydrogen.

Key advantages of its technology include:

• High efficiency: A projected energy requirement approximately five times more efficient than the best green hydrogen methods
• Scalability: By repurposing EAF technology that is already widely used at way above 100 MW capacity (i.e. the anticipated power capacity of a full size Tulum commercial plant reactor), Tulum can meet the massive scale of today’s existing users of hydrogen such as steel producers, chemical plants, and refineries (in the range of 20 to 200 tons/day and above)
• Cost competitiveness: Anticipated levelized production costs on par with grey hydrogen and significantly more competitive than other sustainable hydrogen production pathways, even without subsidies or the sale of the valuable carbon co-product
• Non-catalytic technology: The electric arc is a high-temperature heat source that allows the methane pyrolysis reaction to occur without the technical and operational hurdles that catalytic solutions entail
• Reduced footprint: Tulum’s plants require eight times less land than green hydrogen facilities, enabling on-site production and reducing transportation costs

Tulum is led by CEO and Co-founder Massimiliano Pieri, formerly CEO of M2X Energy and an executive at Eni Next, along with CTO Donald Kendrick, previously CTO at methane-pyrolysis company Ekona. Together, they possess valuable expertise in developing and scaling energy technologies.

“We are thrilled to partner with TDK Ventures, whose global reach and technical expertise will be invaluable as we move to pilot and commercial scale,” said Pieri. “Their investment and belief in us are an equal win for both of our companies. Along with their financial investment comes its famous ‘TDK Goodness,’ which provides access to various strategic synergies across TDK’s power electronics and materials businesses. Similarly, Tulum has the very real potential of expanding TDK’s impact in decarbonization, particularly in hard-to-abate sectors.”

The proceeds from this oversubscribed Seed round will be strategically deployed to construct Tulum Energy's inaugural pilot plant in Pesquería, Mexico, located within the industrial complex of Ternium, Latin America's leading steel company and a part of the Techint Group.

About TDK Corporation

TDK Corporation is a world leader in electronic solutions for the smart society based in Tokyo, Japan. Built on a foundation of material sciences mastery, TDK welcomes societal transformation by resolutely remaining at the forefront of technological evolution. It was established in 1935 to commercialize ferrite, a key material in electronic and magnetic products. TDK’s comprehensive, innovation-driven portfolio features passive components such as ceramic, aluminum electrolytic and film capacitors, as well as magnetics, high-frequency, and piezo and protection devices. The product spectrum also includes sensors and sensor systems such as temperature and pressure, magnetic, and MEMS sensors. In addition, TDK provides power supplies and energy devices, magnetic heads, software and more. These products are marketed under the product brands TDK, EPCOS, InvenSense, Micronas, Tronics, and TDK-Lambda. TDK focuses on demanding markets in automotive, industrial and consumer electronics, and information and communication technology. The company has a network of design and manufacturing locations and sales offices in Asia, Europe, and in North and South America. In fiscal 2025, TDK posted total sales of USD 14.4 billion and employed about 105,000 people worldwide.

About TDK Ventures

TDK Ventures Inc. invests in startups to bolster innovation in materials science, energy/power and related areas typically underrepresented in venture capital portfolios. Established in 2019 as a wholly-owned subsidiary of TDK Corporation, the corporate venture company’s vision is to propel the digital and energy transformations of segments such as robotics and industrial, next-generation transportation, mixed reality and the wider IoT/IIoT markets. TDK Ventures will co-invest and support promising portfolio companies by providing technical expertise and access to global markets where TDK operates. Interested startups or investment partners may contact TDK Ventures: www.tdk-ventures.com or contact@tdk-ventures.com .

About Tulum

Tulum Energy is a leading climate-tech startup pioneering advanced methane pyrolysis technology for clean hydrogen production in heavy industrial applications. Built by TechEnergy Ventures, the corporate venture capital arm of the Techint Group's Energy Transition Division, the company is dedicated to providing a scalable, efficient, and cost-effective alternative to conventional hydrogen production. Tulum Energy is committed to helping industries decarbonize while simultaneously unlocking new value through the commercialization of valuable solid carbon co-products.

You can download this text and associated images from: https://tdk-ventures.com/news/announcements/tdk-ventures-invests-in-tulum-energy-to-advance-scalable-low-carbon-hydrogen-production

View source version on businesswire.com: https://www.businesswire.com/news/home/20250708072423/en/