Exxon Mobil Corporation (XOM) announced Monday it's teaming up with BASF to push methane pyrolysis technology forward, targeting efficient, low-emission hydrogen production for industrial applications. This isn't just another pilot project—it's a strategic bet on hydrogen production methods that can work in places where traditional carbon capture infrastructure doesn't make sense.

The two companies are building a demonstration plant at ExxonMobil's Baytown Complex that will churn out up to 2,000 tons of low-emission hydrogen and 6,000 tons of solid carbon each year. The solid carbon byproduct is a bonus—unlike traditional hydrogen production methods that generate CO2, methane pyrolysis splits methane into hydrogen and solid carbon, which can potentially be used in other industrial applications.

The facility is designed to validate whether this technology can actually scale commercially. That's the critical question here: does methane pyrolysis work at industrial volumes, or does it remain a lab curiosity?

Why This Approach Matters

Methane pyrolysis fits into ExxonMobil's broader hydrogen strategy by offering flexibility across different geographies and existing infrastructure. For regions where carbon capture and storage isn't economically feasible or geologically possible, this technology provides an alternative pathway to low-emission hydrogen production.

Mike Zamora, president of ExxonMobil Technology and Engineering Company, put it plainly: "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."

Dr. Stephan Kothrade, member of the Board of Executive Directors and Chief Technology Officer at BASF, emphasized the technology's potential impact: "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. 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."

Recent Financial Performance

Last month, ExxonMobil reported third-quarter 2025 earnings of $8.1 billion, or $1.88 per share, beating analyst expectations of $1.47. Total revenues came in at $85.29 billion, slightly missing the consensus forecast of $87.71 billion.

Price Action: XOM shares were down 0.12% at $119.15 at Monday's last check.