CPS Energy and Modern Hydrogen Launch Turquoise Hydrogen Pilot in Texas

On July 23, 2025, CPS Energy—San Antonio’s own public utility and the largest municipal utility in the country—announced a fresh partnership with Washington-based clean tech company Modern Hydrogen. Their shared mission? To bring on-site, modular methane pyrolysis tech into play—converting natural gas straight into clean hydrogen and solid carbon, all without the nasty CO₂ emissions you'd usually get.

Lighting the Path to Cleaner Power

The concept is pretty straightforward, but it packs a punch. These small-scale pilot systems will be set up right at CPS Energy’s facilities. Using high heat in a process known as methane pyrolysis, the units break down natural gas into two components: hydrogen gas—a clean energy carrier—and solid carbon, which can be reused in industries like construction or road building. Since no carbon dioxide is released in the process, it's a much cleaner alternative to traditional methods like steam methane reforming.

Put simply, it’s a smarter, cleaner way to make hydrogen—and it’s happening right here in Texas.

Local Innovation, Regional Impact

With 1.5 million residents and a long-standing commitment to public control over utilities, San Antonio has become a key player in the future of energy—especially after the 2021 grid crisis. This project makes the most of what we’ve already got: abundant natural gas resources, CPS Energy’s infrastructure, and a growing need for more resilient power. From strengthening the grid to fueling city buses, the benefits hit close to home.

It’s made in America, built for a stronger, cleaner future in Texas.

What Is Methane Pyrolysis, and Why Now?

You might’ve heard of turquoise hydrogen—that’s the nickname for the hydrogen produced through methane pyrolysis. The process involves heating natural gas to over 760°C without letting in oxygen. The result? Usable hydrogen fuel and a solid carbon byproduct. Best part? Since it doesn’t release CO₂ directly, it finds a sweet spot between fossil fuel scalability and clean energy ambitions.

Compared to green hydrogen, which relies on electricity from renewables, this method works with what’s already in place. That means utilities can start making changes toward decarbonization without tearing down and rebuilding entire systems.

Real-World Problems, Real-World Solutions

What sets this project apart is its boots-on-the-ground approach. These compact methane pyrolysis units can go right where the energy is needed—whether that’s a power plant or a transportation hub. That takes a massive strain off the hydrogen distribution system and also boosts grid resiliency, which is crucial after those tough winter outages Texas has faced.

But it’s not just about lighting homes and powering buses. Selling the solid carbon byproduct to industries like asphalt and construction could mean more local jobs, fresh business opportunities, and new revenue right here at home.

A Step Forward for U.S. Energy Leadership

Modern Hydrogen isn’t some early-stage startup—it’s got serious backing and other pilot projects already in motion across the country. For CPS Energy, this partnership is a smart move in step with federal hydrogen incentives and national clean energy goals. More importantly, it’s about staying nimble and innovative while keeping the lights on reliably for millions of Texans.

And if this works as well as expected, other utilities might just follow San Antonio’s lead. This isn’t just a regional milestone—it could help set the tone for how the entire country manages the clean hydrogen shift.

Moving Toward a Scalable Future

They’re still ironing out the final details—like how much hydrogen will be generated and which parts of the grid it will support—but the direction is promising. This pilot places San Antonio firmly on the map when it comes to clean hydrogen and energy innovation.

From low-emission electricity and public transit to greener construction methods, the ripple effects could touch all corners of the economy. And since it's all happening locally, CPS Energy and Modern Hydrogen are proving that the road to a cleaner, more resilient future is paved with American-made solutions—one breakthrough at a time.