Graphitic Energy Commissions Pilot Plant to Produce Low-Cost Clean Hydrogen and Graphite

Novel methane pyrolysis technology converts abundant natural gas into zero-emission hydrogen and graphite to meet energy and critical mineral needs

SAN ANTONIO, March 10, 2025 (GLOBE NEWSWIRE) -- Graphitic Energy, formerly known as C-Zero, has commissioned its pilot plant at the Southwest Research Institute (SWRI) in San Antonio, TX.

This state-of-the-art facility is the company’s first at-scale demonstration of its novel form of methane pyrolysis that converts natural gas into hydrogen and solid, graphitic carbon.

Graphitic Energy’s (“Graphitic”) pilot plant is capable of producing several hundred kilograms of hydrogen and up to 1,000 kg of solid carbon per day, during continuous 24/7 operations. It is expected to operate through the end of 2025.

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“We have two primary goals for the pilot plant. The first is to obtain scale-up data for designing commercial scale plants, and the second is to produce large volumes of carbon to send to our carbon offtake partners,” said Dr. Patrick Hanks, Chief Technology Officer of Graphitic Energy.

Graphitic’s novel approach to methane pyrolysis has virtually no direct CO₂ emissions, requires very little electricity, and can scale to produce 100,000 mt of hydrogen per year in a single process train. Unlike other clean hydrogen approaches, Graphitic’s process economics do not require government subsidies to be cost-competitive, and the company can profitably deliver both hydrogen and graphite at current market prices. In addition, the company’s technology can be sited anywhere natural gas or LNG are available, without the need to source renewable electricity or perform geological CO₂ sequestration.

Zach Jones, Chief Executive Officer and Co-Founder of Graphitic Energy, stated, “The world spent the last few years anticipating an ‘energy transition’, but it already happened during the fracking revolution of the 2010s. America is currently the world leader in producing natural gas—one of the cheapest, greenest fuels available. Our innovation makes it even cleaner by extracting the carbon as solid graphite, which allows us to onshore a critical mineral used in everything from batteries to nuclear reactors. The hydrogen can help meet the domestic demand for over 10 million metric tons per year, primarily from the refining and ammonia sectors. This is how we build American energy security and independence while simultaneously decarbonizing.”

The company’s pilot is supported by a recent $15 million extension of its Series A funding, bringing its total investment to over $65 million. Investors in the extension included Energy Capital Ventures, Breakthrough Energy Ventures, and Trafigura.

Vic Pascucci, Co-Founder and Managing General Partner of Energy Capital Ventures, stated, “We’ve been impressed with the team’s ingenuity in solving for the clean hydrogen opportunity and their expertise in establishing innovative approaches for achieving their mission. Driving down the cost of clean energy is critical to global adoption, so we’re excited about the path Graphitic Energy is taking. We’ve been studying pyrolysis and the broader hydrogen economy for several years. Graphitic Energy is clearly a game-changing leader in the green molecules energy expansion!”

Carmichael Roberts of Breakthrough Energy Ventures, added, “This is the third time we’ve invested with the Graphitic Energy team since 2020 because we believe in the team's ability to scale a breakthrough technology. Graphitic's innovative approach to producing hydrogen and graphite from natural gas aligns with strategic priorities like strengthening domestic supply chains and building energy security. At the same time, it offers a fast pathway to making clean hydrogen economical, which is a game changer for the industry and the climate.”

About Graphitic Energy

Headquartered in Santa Barbara, CA, with plant operations in San Antonio, TX, Graphitic Energy has developed a novel methane pyrolysis process for sustainably using natural gas to produce hydrogen and graphite. This delivers low-cost, clean hydrogen alongside high-value, graphitic carbon. Unlike current hydrogen generation technologies, Graphitic’s process converts abundant natural gas into hydrogen and solid carbon with virtually no direct CO₂ emissions. The company has raised over $65 million from investors including Breakthrough Energy Ventures, SK Gas, Eni, Mitsubishi Heavy Industries, ENGIE, AP Ventures, and Trafigura.

For more information, visit www.graphitic.com.