How BASF & ExxonMobil are Producing Green Hydrogen Energy

BASF and ExxonMobil are joining forces to advance hydrogen technology that could reshape the landscape of low-carbon energy.

The companies have signed a joint development agreement to scale methane pyrolysis, a process designed to produce clean hydrogen for industrial and energy use.

Together, they plan to build and operate a demonstration facility capable of generating up to 2,000 tonnes of low-emission hydrogen and 6,000 tonnes of solid carbon a year.

What is methane pyrolysis?

Methane pyrolysis is a process that uses electricity to split natural gas or other gases, such as bio-methane, into hydrogen and solid carbon. This method prevents process-related CO₂ emissions while leveraging existing natural gas networks – offering an alternative route to low-emission hydrogen without relying on water-intensive electrolysis.

Although it uses natural gas as a feedstock, the technique reduces emissions by decomposing methane rather than combusting it. Hydrogen produced through pyrolysis can be used as an energy carrier or fuel in power generation and mobility applications, while the resulting carbon can serve steel and aluminium production, construction and battery material sectors.

Compared with steam methane reforming, this process is far more energy-efficient, using around five times less electrical input than electrolysis.

Dr Stephan Kothrade, Member of the Board of Executive Directors and Chief Technology Officer at BASF, says: “This novel methane pyrolysis technology generates competitive low-emission hydrogen and has a high potential for further reduction of the carbon footprint of our product portfolio."

ExxonMobil's role in hydrogen production

The demonstration plant, set within ExxonMobil’s Baytown complex in Texas, is designed to move the technology towards large-scale commercialisation. Once fully developed, it will be capable of producing up to one billion cubic feet of low-carbon hydrogen per day – hydrogen that is virtually carbon-free, with around 98% of CO₂ removed.

ExxonMobil expects the site to also produce over one million tonnes of low-carbon ammonia annually, enhancing hydrogen’s role in the global energy transition and export markets.

Mike Zamora, President of ExxonMobil Technology and Engineering Company, says: “This collaboration combines technological innovations and industrial expertise of ExxonMobil and BASF to accelerate the development of low-emission hydrogen.

“Methane pyrolysis holds real potential, especially in regions where traditional carbon capture and storage solutions are less viable. ExxonMobil brings decades of deep technical knowledge in methane pyrolysis and a shared commitment to innovation.”

In 2025, the Abu Dhabi National Oil Company acquired a 35% equity stake in ExxonMobil's Baytown hydrogen project, directing new investment into low-carbon power production and clean fuels.

Tackling methane emissions

BASF and Siemens Energy have previously partnered to develop a 54 MW water electrolyser –  an early step towards large-scale green hydrogen for industry. Meanwhile, methane pyrolysis represents another route in the portfolio of emission reduction technologies, particularly where natural gas remains central to energy systems.

McKinsey analysis suggests that methane abatement offers some of the most impactful and lowest-effort greenhouse gas reductions available today. The upstream sector alone has the potential to halve its greenhouse gas footprint using cost-neutral or economically positive strategies.

Dr Stephan Kothrade adds: “In line with our new Winning Ways Strategy, it will contribute to our ambition to be the preferred chemical company to enable our customers’ green transformation.

“We have been working on this technology for more than a decade and developed a superior reactor concept that we successfully validated at our test plant in Ludwigshafen.

By combining BASF’s process innovation with ExxonMobil’s scale-up expertise we are bringing this cost-efficient low-emission hydrogen solution closer to economically viable industrial deployment.”

The bigger picture

Baseline innovations like this could accelerate hydrogen’s wider role in decarbonising energy systems. For energy producers, balancing renewable generation with hydrogen-derived fuels offers resilience where electrification alone may fall short.

As hydrogen technology becomes more efficient and affordable, projects such as BASF and ExxonMobil’s may mark a turning point in bringing cleaner, scalable energy to industry and beyond.