Turquoise hydrogen, produced through methane splitting, has emerged as the most cost-efficient clean hydrogen pathway in Europe, according to a report by Hydrogen Europe. This process involves thermal decomposition of methane to produce hydrogen and solid carbon, offering a zero-emission solution when powered by renewable energy. Compared to green and blue hydrogen, turquoise hydrogen provides the lowest cost of decarbonisation, with a base-case levelised cost potentially as low as €2.3/kg. The production cost of turquoise hydrogen could reach cost parity with grey hydrogen if the EU Emissions Trading System price per tonne of CO2 increases to €100. The process also boasts advantages in greenhouse gas emissions, as it produces solid carbon instead of CO2, which is easier and cheaper to transport and store. Despite facing regulatory challenges and technology scalability issues, turquoise hydrogen shows promise for cost-effective and low-emission hydrogen production. The report highlights potential revenue streams from by-products like carbon black, further reducing the overall cost of production. However, the technology's reliance on gas infrastructure and uncertainties in solid carbon demand and price levels pose challenges to its scalability and widespread adoption in the long term.