BASF and ExxonMobil Plan Methane Pyrolysis Demo Plant for Low-Emission Hydrogen

By: | January 13th, 2026

A large industrial chemical plant illuminated at dusk, with multiple levels of metal scaffolding, pipes, and walkways lit by bright white lights.

Image source: BASF

BASF and ExxonMobil have signed a joint development agreement to move methane pyrolysis from lab-scale units to a demonstration plant capable of producing thousands of tons of low-emission hydrogen per year. The partners see the process as a way to supply hydrogen without the process CO₂ emissions tied to conventional steam-methane reforming.

Methane pyrolysis uses electricity to split methane or bio-methane into hydrogen and solid carbon, rather than hydrogen and CO₂. According to the companies, the approach needs far less electrical energy than water electrolysis and does not consume water, an important factor in regions with tight resources. It also taps existing natural gas networks, reducing the need for new pipeline infrastructure.

BASF has spent more than a decade refining its reactor concept with funding from Germany’s Federal Ministry of Research, Technology and Space, validating the design at a test plant in Ludwigshafen. ExxonMobil brings experience from earlier methane pyrolysis work and large-scale project delivery, including integration into complex petrochemical sites.

The planned demonstration unit at ExxonMobil’s Baytown complex in Texas is designed to produce up to 2,000 tons of hydrogen and 6,000 tons of solid carbon each year. That carbon stream is not a waste gas but a product line, with potential uses in steel and aluminum production, construction materials, and advanced carbon products such as battery anode materials.

Because methane pyrolysis generates solid carbon instead of CO₂, it is particularly attractive for countries where carbon capture and storage face geological, policy, or public-acceptance barriers. If the Baytown plant proves the concept at scale, the same basic module could be replicated near refineries, chemical plants, or industrial clusters that already draw large hydrogen volumes.

A successful demonstration at Baytown would give industry a new route to hydrogen that cuts process emissions without relying on underground CO₂ storage, while also opening a supply of high-purity carbon for materials producers.

Ashton Henning

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