ExxonMobil, BASF Advance Methane Pyrolysis to Scale Low Emission Hydrogen Production
3 minute readPublished: Wednesday, November 19, 2025 at 1:32 pm
ExxonMobil and BASF Partner to Scale Low-Emission Hydrogen Production
In a significant move towards sustainable energy solutions, ExxonMobil and BASF are joining forces to commercialize methane pyrolysis, a technology poised to revolutionize hydrogen production. The companies have entered a joint development agreement to build a demonstration plant, designed to produce approximately 2,000 tons of low-emission hydrogen annually.
Methane pyrolysis offers a promising alternative to traditional hydrogen production methods, particularly in regions where carbon capture and storage faces challenges due to geological constraints, high costs, or policy limitations. The process converts natural gas or bio-methane into hydrogen and solid carbon using electricity, eliminating the generation of process CO2. This approach avoids heavy water use and requires less power compared to electrolysis.
The partnership leverages the expertise of both industry giants. ExxonMobil brings its deep technical knowledge in methane pyrolysis, while BASF contributes its process innovation. The demonstration plant will be located at ExxonMobil's Baytown complex, allowing for integration with existing natural gas infrastructure and downstream hydrogen applications. The project aims to validate thermal behavior, materials performance, and power requirements under near-commercial conditions.
A key advantage of methane pyrolysis is the creation of a valuable solid carbon byproduct, which can be used in various industries, including metals manufacturing, construction, and battery materials. This byproduct stream can improve project economics and reduce waste, making the process more financially attractive.
The success of methane pyrolysis hinges on electricity price stability, natural gas availability, and regulatory treatment of process emissions. The project's progress will be closely watched by investors and industrial buyers, particularly in regions like the Gulf Coast, where methane-based hydrogen could align with state industrial policy and federal incentives.
BNN's Perspective: This collaboration represents a pragmatic step towards decarbonizing the hydrogen industry. While the technology is still in its early stages, the potential to leverage existing infrastructure and create valuable byproducts makes methane pyrolysis an attractive option. The project's success will depend on supportive policies and the ability to scale the technology efficiently.
Keywords: ExxonMobil, BASF, methane pyrolysis, low-emission hydrogen, hydrogen production, Baytown, solid carbon, decarbonization, natural gas, bio-methane, electrolysis, carbon capture, industrial decarbonization, hydrogen market, renewable energy, sustainable energy, energy transition, climate change, ESG, green energy.