How Methane Pyrolysis Unlocks Cost-competitive Clean Hydrogen

For decades, the clean hydrogen economy has pursued cost parity with today’s conventional production pathways. While the environmental imperative for switching away from emissions-intensive grey hydrogen is clear, the associated ‘clean premium’ has remained a significant barrier to widespread adoption. The question has always been when, and how, clean hydrogen could finally compete.

The decarbonization opportunity

In its Global Hydrogen Review 2024, the International Energy Agency (IEA) estimates that hydrogen demand reached 97 million tonnes in 2023. Almost all was produced from natural gas and coal, with less than 1% considered low emissions. Further, the IEA estimates hydrogen demand in 2030 to approach 150 million tonnes according to its Net Zero Emissions by 2050 Scenario, where most of that growth will come from clean hydrogen.

Replacing “grey” hydrogen (produced via steam methane reforming of natural gas) is a critical step on the path to industrial decarbonization, and the growth in hydrogen demand makes the market opportunity for clean hydrogen technologies significant. However, to be successful, these technologies need to compete with SMR on cost, scale, and reliability.

Turning a liability into an asset

The economic breakthrough of methane pyrolysis is in its ability to turn a single natural gas feedstock into two valuable products: low-carbon hydrogen and solid carbon. Unlike processes that produce a gaseous carbon dioxide (CO2) liability requiring costly management, methane pyrolysis creates a tangible asset.

The solid carbon co-product is the key. By valorizing it in established and emerging markets for industrial goods – things like low-carbon cement, steel, composites, rubbers, and tires – producers create a new revenue stream which directly offsets hydrogen production costs. While blue hydrogen (SMR+CCUS) adds significant cost to manage CO2, the methane pyrolysis process creates value that improves the bottom line.

Proven at industrial scale, ready for deployment

Methane pyrolysis’ economic model isn’t just theoretical. Comprehensive techno-economic analyses and the development of commercial-scale facilities are confirming its viability. Because methane pyrolysis eliminates the need for massive, capital-intensive CO2 pipeline and sequestration infrastructure, it offers a more agile and rapid path to deployment. The ability to build decentralized, on-site production plants empowers companies to accelerate their decarbonization by taking direct control of their emissions, without waiting for the development of regional CO2 networks.

The equation for clean hydrogen has fundamentally changed. By transforming a carbon-management liability into a solid asset, methane pyrolysis solves an economic puzzle that has challenged the industry for decades. For industrial leaders, the choice no longer has to be between affordability and sustainability; the era of cost-competitive clean hydrogen is here.

How does Ekona fit in all this?

Ekona recently completed a techno-economic analysis of a 20-tonne-per-day (tpd) commercial-scale project. The analysis confirms that by leveraging competitive natural gas prices and realizing market value for the solid carbon, our methane pyrolysis technology can deliver turquoise hydrogen at a cost competitive with newly built SMRs, while significantly reducing life cycle greenhouse gas emissions.

Today, we operate a 200-kilogram-per-day pilot plant at our Burnaby facility, where we evaluate our methane pyrolysis reactors and process integration. We are currently developing a next-generation xCaliber™ reactor, which will allow us to demonstrate increased capacity, higher efficiency, and commercial-grade carbon black for evaluation with supply chain partners. Ekona’s next generation reactor and Burnaby pilot will provide a validated platform for field deployment with customers and support scale-up for industrial applications.