In-Depth Analysis of the Competitive Landscape of Hydrogen-Carbon Co-Production Technology in 2026

Hydrogen-carbon co-production technology (methane pyrolysis for hydrogen and carbon material co-production) is one of the cutting-edge technology routes in the global hydrogen energy sector. Its core is to directly crack natural gas (mainly composed of methane) into hydrogen and high-purity solid carbon materials under high-temperature conditions, achieving the goal of “zero carbon emission” hydrogen production[1]. Compared with the traditional steam methane reforming (SMR) process, this technology route can avoid 9 to 12 kilograms of carbon dioxide emissions per kilogram of hydrogen, while producing high-value-added carbon material products, with significant economic and environmental benefits[3].

Against the backdrop of the “Dual Carbon” strategy, hydrogen energy has been positioned as an “important component of the national energy system” and a “key development direction for strategic emerging industries”. The 2025 Government Work Report included hydrogen energy as a cutting-edge emerging industry for the first time, reflecting the high attention paid to this field at the national level[3].

Yu Qingkai, a researcher at the Shanghai Institute of Microsystem and Information Technology, Chinese Academy of Sciences, and Chairman of Shanghai Hydrogen Field New Materials Technology Co., Ltd., returned to China in 2018 to engage in the R&D and industrialization of natural gas pyrolysis for hydrogen-carbon co-production technology[1][2]. In 2021, Yu Qingkai founded Shanghai Hydrogen Field New Materials Technology Co., Ltd. to promote the large-scale preparation of clean hydrogen and high-purity carbon materials[1].

The team’s R&D work is supported by the National Key R&D Program’s “Hydrogen Energy Technology” key special project. In 2023, the “Natural Gas Pyrolysis for Hydrogen Production and Co-Production of Nanocarbon Materials Technology” project was officially launched, led by the Shanghai Institute of Microsystem and Information Technology, CAS, and jointly undertaken by advantageous industry-university-research institutions including Shanghai Hydrogen Field New Materials Technology Co., Ltd., ShanghaiTech University, Xi’an Jiaotong University, and Harbin Institute of Technology[3].

The pyrolysis technology developed by Yu Qingkai’s team can simultaneously produce high-purity hydrogen and graphite under almost zero-pollution operating conditions[1]. Compared with traditional high-pollution hydrogen and carbon production processes, this technology has the following advantages:

• Zero Carbon Emissions
  : Avoids greenhouse gas emissions, realizing green and high-value utilization of methane resources
• Cost and Efficiency Advantages
  : More cost-effective and efficient in distributed scenarios such as chemical plants and hydrogen refueling stations
• Product Diversification
  : Produces high-value-added carbon materials such as hydrogen and graphene

Currently, the team is focusing on solving the continuous operation problem of pyrolysis reactors, aiming to increase the stable continuous operation time to one month from the current level[1]. Breaking through this technical bottleneck is crucial for realizing large-scale production. The team plans to implement a demonstration application in Sichuan Province, which is rich in natural gas resources, in 2026[1].

In terms of market layout, the team plans to carry out large-scale production in natural gas-producing areas, while promoting nationwide distributed hydrogen production in chemical industry sectors and hydrogen refueling stations with high hydrogen demand[1].

More than 30 innovative companies worldwide have carried out natural gas direct pyrolysis for hydrogen production business, forming a diversified competitive landscape[3]. According to CB Insights analysis, among methane pyrolysis technology developers, Monolith Materials is listed as an industry leader, forming a first-tier competitive landscape with 11 companies including BASF, Sumitomo, and Modern Hydrogen[4].

• Technology Route
  : Adopts thermal plasma technology based on the Kværner process
• Production Capacity Scale
  : Completed a commercial demonstration plant in Nebraska in 2020, with a hydrogen production capacity of 600 kg/hour and an annual carbon black output of 14,000 tons
• Commercial Progress
  : Received a US$1 billion loan from the U.S. Department of Energy in 2022, and reached a cooperation agreement with globally renowned tire manufacturer Goodyear
• Technical Level
  : Under 2100°C conditions, methane conversion rate reaches 94%, with power consumption of 0.85 MW[4][5]

• Technology Route
  : Mobile carbon bed catalytic natural gas pyrolysis for hydrogen production technology
• R&D History
  : Has continuously carried out R&D with support from the German government since 2013
• Project Progress
  : Was prominently promoted at the first Carbon Neutrality Expo in 2023, and is currently undergoing pilot verification in Ludwigshafen, Germany[3][5]

• Canada’s Ekona Power
  : Founded in 2017, focusing on the development of methane pyrolysis platform technology
• Finland’s Hycamite TCD Technologies
  : Develops catalytic methane decomposition technology
• Australia’s Hazer Group
  : Develops a methane pyrolysis process based on catalytic technology, with a pilot plant expected to be completed in 2021[4][5]

1. Continuous Operation Issue
   : The long-term continuous and stable operation of pyrolysis reactors is the current biggest technical bottleneck, and the CAS team is working to increase the continuous operation time to one month[1]

2. Catalyst Deactivation
   : Catalytic pyrolysis technology faces the problem of easy catalyst deactivation, requiring the development of high-activity catalysts and improved reactor design[6]

3. Cost Competitiveness
   : The current cost of methane pyrolysis for hydrogen production still lags behind that of the mature steam reforming process, and unit costs need to be reduced through scale-up

4. Equipment Durability
   : High-temperature environments put forward higher requirements for the corrosion resistance and service life of reactor materials[5]

1. Technology Integration and Innovation
   : Multiple technology routes (thermal plasma, catalysis, molten media, etc.) will continue to be optimized and iterated

2. Large-Scale Application
   : Moving from the demonstration stage to commercial scale, with multiple sets of equipment expected to be put into operation after 2026

3. Industrial Collaboration
   : In-depth integration with downstream application scenarios such as steel metallurgy, chemical industry, and hydrogen refueling stations

4. International Cooperation and Competition
   : Technological cooperation and market competition coexist, and China is expected to achieve “overtaking on a curve” in this field

2026 is a key year for the industrialization of hydrogen-carbon co-production technology. The CAS team has formed a technology system with independent intellectual property rights in the field of natural gas pyrolysis for hydrogen-carbon co-production technology. Supported by the National Key R&D Program, it is expected to make important breakthroughs in the industrialization process.

From the perspective of the international competitive landscape, international giants such as U.S.-based Monolith Materials and Germany’s BASF are currently leading in terms of technological maturity and commercialization progress, but China has the conditions to catch up by virtue of its huge market scale, abundant natural gas resources (especially in western regions such as Sichuan), and complete industrial chain supporting facilities.

Driven by the “Dual Carbon” strategy, hydrogen-carbon co-production technology, as an important supplementary path for green hydrogen production, will play an important role in future energy transition. It is recommended to continue to pay attention to the technological R&D progress of the CAS team and the implementation of the Sichuan demonstration project in 2026, which will provide an important reference for judging China’s international competitiveness in this field.

[1] China News Service - “Chinese Scientists Break Through Hydrogen-Carbon Co-Production Technology, Zero-Pollution Hydrogen Production Boosts Energy Transition” (https://www.chinanews.com.cn/gn/2026/01-18/10554059.shtml)

[2] Sohu - “Chinese Scientists Break Through Hydrogen-Carbon Co-Production Technology, Zero-Pollution Hydrogen Production Boosts Energy Transition” (https://m.sohu.com/a/977307947_123753)

[3] Jiefang Daily - “National Key R&D Program ‘Natural Gas Pyrolysis for Hydrogen Production and Co-Production of Nanocarbon Materials Technology’ Key Special Project Launched in Shanghai” (https://www.jfdaily.com/wx/detail.do?id=744407)

[4] CB Insights - “Monolith Materials Company Profile” (https://www.cbinsights.com/company/boxer-industries)

[5] Asian Development Bank - “Prefeasibility Analysis for Carbon Capture, Utilization and” (https://www.adb.org/sites/default/files/project-documents/52041/52041-003-tacr-en_2.pdf)

[6] “Current Status and Development Trends of Green Clean Energy Technology Under the ‘Dual Carbon’ Goal”, SciOpen (https://www.sciopen.com/local/article_pdf/10.3969/j.issn.2096-1693.2023.05.054.pdf)