Graphitic Energy, a methane pyrolysis start-up, has established a pilot plant in San Antonio, Texas, aiming to convert natural gas into solid carbon and low-carbon hydrogen. The pilot plant, located at the Southwest Research Institute, is part of Graphitic's innovative approach to address CO2 emissions from conventional hydrogen production while also contributing to the availability of graphite—a key raw material for electric vehicle batteries. CEO Zach Jones highlights the dual benefit of the technology in solving environmental challenges and meeting industrial needs. By utilizing a solid catalyst for turquoise hydrogen production, the company has seen improvements in the quality of carbon output, making it more economically viable. The shift away from a liquid catalyst system and the strategic pivot towards graphite and hydrogen sales mark a significant evolution in Graphitic Energy's business model. Despite the positive advancements, challenges in scaling methane pyrolysis technology persist. Analysts point out the scale mismatch between hydrogen and carbon production, raising concerns about meeting market demands effectively. While the market for graphite is substantial, hydrogen demand far exceeds it, leading to a surplus of carbon in the production process. This discrepancy underscores the complexities in balancing the production of both elements efficiently. However, the company's dedication to gathering essential data through the pilot plant and engaging with offtake partners for testing demonstrates a proactive approach to overcoming these challenges. Experts in the field acknowledge the potential of turquoise hydrogen production but also highlight the competitive landscape, with 'blue' hydrogen production methods still prevalent due to cost-efficiency and scalability. The article concludes with insights from industry leaders emphasizing the need for methane pyrolysis technologies to address the market dynamics and optimize the production balance between hydrogen and carbon. Graphitic Energy's pioneering efforts in Texas reflect a broader industry trend towards sustainable and innovative solutions in the energy sector.