Splitting Gas to Clean Up Industrial Hydrogen

ExxonMobil and BASF build a Texas demo plant to split natural gas into low-emission hydrogen and solid carbon at scale

26 Jun 2026

A joint development agreement between ExxonMobil and BASF is pushing methane pyrolysis closer to commercial reality. Construction has started on a demonstration plant at ExxonMobil's Baytown Complex in Texas. Designed to produce up to 2,000 tonnes of low-emission hydrogen and 6,000 tonnes of solid carbon each year, the facility aims to prove the technology is ready for industrial scale. That output marks a significant step beyond laboratory conditions.

Methane pyrolysis splits natural gas into hydrogen and solid carbon without direct carbon dioxide emissions. That distinction sets it apart from conventional production methods, which release significant greenhouse gases into the atmosphere.

Unlike electrolysis routes, this process leverages existing natural gas infrastructure, potentially lowering costs for industrial buyers. Solid carbon is also valuable in its own right, carrying commercial appeal across materials and manufacturing sectors.

Dr. Stephan Kothrade, Chief Technology Officer at BASF, underscored the partnership's strategic weight. "This novel methane pyrolysis technology generates competitive low-emission hydrogen and has a high potential for further reduction of the carbon footprint of our product portfolio," he said. Validating that potential at Baytown is precisely what this demonstration phase is built to achieve.

For industrial businesses navigating decarbonization pressure, a commercially viable low-emission hydrogen supply could reshape procurement strategies and emissions reporting across entire supply chains. Energy-intensive sectors such as chemicals, steel, and refining stand to benefit most directly from a scalable alternative to carbon-heavy feedstocks.

Consumers would ultimately see lower embedded emissions across a wide range of manufactured goods. If the demonstration plant meets its production targets, methane pyrolysis could emerge as a credible pillar of the industrial hydrogen market well before the end of this decade.