Graphitic Energy, a methane pyrolysis start-up, has unveiled a pioneering pilot plant in San Antonio, Texas, that has the capacity to convert natural gas into solid carbon and low-carbon hydrogen on a daily basis. This innovative project, supported by a $15 million extension of its series A funding round, aims to address two critical issues simultaneously: reducing CO2 emissions associated with hydrogen production and establishing a US supply of graphite for various applications, including electric vehicle batteries. The pilot plant, hosted at the Southwest Research Institute, is part of Graphitic's transition away from liquid catalysts towards utilizing a solid catalyst for the methane pyrolysis process, which results in the production of turquoise hydrogen. The company's CEO, Zach Jones, highlights the importance of the pilot plant's size in facilitating substantial carbon output for testing and market activities. While the technological advancement shows promise, analysts like Cansu Doganay from Lux Research emphasize the need for further improvements to streamline scaling up. Anthony Schiavo from Lux points out the challenge of balancing the market demand for graphite and hydrogen, indicating a potential mismatch that could impact scalability. Despite these obstacles, Graphitic Energy's pilot plant represents a significant step towards sustainable hydrogen production and innovative business strategies in the energy sector.