Methane Thermolysis Has A Carbon Market Problem
cleantechnica.com Aug 29, 2026

Methane Thermolysis Has A Carbon Market Problem

AI-summarised brief · reviewed before publication

Methane thermolysis, also called methane pyrolysis, splits methane with heat to produce hydrogen and solid carbon, avoiding CO₂ emissions associated with blue‑hydrogen routes. Hazer Group has moved the technology from lab to a demonstration plant and is engineering commercial‑scale units. A plant sized to output 300,000 t of hydrogen per year would generate about 900,000 t of graphite, roughly 2,500 t daily. Even a large hydrogen‑direct‑reduced‑iron (DRI) steel mill, which could consume both products, would need only 45,000‑63,000 t of carbon annually, leaving 80‑90 % of the graphite without a ready market. Existing carbon users—steelmakers, battery makers, asphalt and concrete producers—require specific purities, morphologies, and volumes that the thermolysis stream cannot consistently meet, turning the plant into a de‑facto carbon‑logistics operation.

💡 Why It Matters

  • · The imbalance forces producers to treat carbon as a separate commodity, adding costly storage, processing, and transport layers that could erode the economic advantage of clean hydrogen.