Beyond Blue & Green: Methane Pyrolysis Is Powering Turquoise Hydrogen
Mar 17, 2026
Dr Cherie Wong
While blue and green hydrogen dominate the low-carbon hydrogen conversation, turquoise hydrogen is quietly gaining momentum. Produced via methane pyrolysis, it delivers near-zero CO2 emissions without the need for carbon capture. Recently, major industrial players such as ExxonMobil, BASF, and KBR have entered this field once dominated by SMEs. Does this signal a shift toward larger-scale commercialization, and how significant is turquoise hydrogen in the broader hydrogen landscape? In this article, IDTechEx explores the technologies, market potential, and emerging role of turquoise hydrogen in the low-carbon energy transition.
Beyond Blue and Green: How Methane Pyrolysis Is Powering Turquoise Hydrogen
Blue and green hydrogen often dominate the conversation of low-carbon hydrogen. Meanwhile, turquoise hydrogen, a hydrogen color sitting between blue and green, is quietly gaining momentum. This raises key questions: what is turquoise hydrogen, how mature are its technologies, and how close is it to commercial deployment? This article explores its development and role in the evolving low-carbon hydrogen landscape.
IDTechEx's latest report, "Blue Hydrogen Production and Markets 2026-2036: Technologies, Forecasts, Players", provides a comprehensive analysis of recent technological developments, the landscape of key players, market trends, and ongoing projects in turquoise hydrogen.
Turquoise hydrogen: near-zero emission hydrogen production
Turquoise hydrogen is produced through methane pyrolysis, which decomposes methane into two products: hydrogen and solid carbon.
Like blue hydrogen, turquoise hydrogen uses methane, typically sourced from natural gas, as its feedstock. However, instead of reforming methane and capturing CO2, the process produces hydrogen without emitting gaseous CO2. The solid carbon can be permanently stored or sold for commercial use. When the process is powered by renewable electricity, the resulting hydrogen can achieve near-zero carbon intensity like green hydrogen. Using low-carbon feedstocks such as renewable natural gas (RNG) or biogas can even make the process carbon-negative.
The fact that turquoise hydrogen uses methane as a feedstock but does not emit gaseous CO2 positions it between blue and green hydrogen. It is often described as a bridge solution as the energy system scales up renewable energy and electrolyzer capacity.
Main type of methane pyrolysis technologies
Methane pyrolysis is not a single technology. IDTechEx broadly categorizes four main approaches, each with different operating principles:
- Thermal pyrolysis: Methane is decomposed at very high temperatures (typically 1,000-1,400 °C) without oxygen or catalysts. Thermal pyrolysis is simple in principle, but achieving consistent product selectivity, especially for high-value carbon, remains a key challenge.
- Catalytic pyrolysis: By introducing catalysts such as nickel or cobalt, methane can be decomposed at lower temperatures (around 600-900 °C) compared to thermal pyrolysis. This reduces energy requirements but introduces challenges related to catalyst deactivation and carbon fouling.
- Plasma pyrolysis: Plasma (an ionized gas containing highly energized particles) enables methane decomposition at extremely high temperatures (up to ~2,000 °C). Plasma systems are highly flexible and capable of producing advanced carbon materials, but they can be energy intensive.
- Molten-media pyrolysis: Sitting between thermal and catalytic approaches, this method bubbles methane through a molten metal or molten salt bath. The molten medium efficiently transfers heat and may also act as a liquid-phase catalyst, offering potential advantages in reactor stability and carbon separation.
Plasma pyrolysis is the most commercially advanced methane pyrolysis technology, followed by catalytic, thermal, and molten-media approaches in terms of commercial readiness.
Methane pyrolysis technologies by maturity and key players. Source: IDTechEx.
Big players are entering the game
Historically, methane pyrolysis has been a field dominated by startups and small and medium-sized enterprises (SMEs). Monolith is the most commercially advanced company, while other notable players, such as Hazer Group, Modern Hydrogen, and Graphitic Energy, are emerging across various pyrolysis pathways.
This landscape is starting to shift. Major industrial players are beginning to see turquoise hydrogen as strategically relevant.
One notable example is Hazer Group, which began as a university spin-off focused on catalytic pyrolysis. In May 2025, the company formed a strategic alliance with engineering giant KBR to scale up its HAZER Process for commercial deployment, with the goal of disrupting the ammonia and methanol markets.
An even clearer indication is the entry of major oil and gas companies into the field. In November 2025, ExxonMobil and German chemical producer BASF announced plans to co-develop thermal methane pyrolysis, including the construction of a demonstration plant in Baytown, Texas, to validate the technology at near-commercial scale. This shift signals growing confidence that turquoise hydrogen may be ready to move beyond niche deployment.
The carbon by-product: opportunity or bottleneck?
One of the defining and most challenging aspects of turquoise hydrogen is its carbon by-product.
For every 1 kg of hydrogen produced, methane pyrolysis generates roughly 3 kg of solid carbon. On paper, this appears to be a big advantage, offering the potential for two revenue streams from a single process. In practice, when produced at commercial scale, the volumes become substantial. This makes carbon sales less of a bonus and more of a necessity to ensure economic viability. At the same time, the global carbon black market is dominated by large, established producers, and overall demand may not be sufficient to absorb the massive volumes generated by scaled-up turquoise hydrogen production. Therefore, identifying suitable markets for the carbon by-product remains a key bottleneck for methane pyrolysis.
Outlook: a quiet but evolving technology
While turquoise hydrogen is unlikely to match the scale of blue or green hydrogen, its strength lies in specific conditions coming together: access to renewable electricity, availability of methane, particularly RNG or biogas to achieve carbon-negative production, and, most importantly, reliable markets for the solid carbon by-product.
The outlook for turquoise hydrogen is becoming increasingly promising due to a notable shift in industry participation. A sector once dominated by SMEs is now drawing the attention of major industrial and energy companies, indicating a transition toward larger-scale commercialization rather than small pilot projects. So, while turquoise hydrogen may continue to hold a smaller market share than blue or green hydrogen, it will have its unique role in the evolving hydrogen landscape.
For more information on this report, including downloadable sample pages, please visit www.IDTechEx.com/BlueHydrogen, or for the full portfolio of energy & decarbonization research available from IDTechEx, see www.IDTechEx.com/Research/Energy.