CPS Energy and Modern Hydrogen collaborate on an hydrogen project

This project aims to meet the growing energy demand resulting from population growth and increasing electric load.

CPS Energy will pilot Modern Hydrogen's technology to convert natural gas into clean hydrogen as a continuous gas decarbonisation service. The project represents the first step in a long-term strategic investment in producing reliable, cleaner energy at scale, as outlined in CPS Energy's 2027 Vision , which includes a commitment to a diverse energy portfolio that incorporates new technologies.

“We need more energy, including natural gas, to meet our customers’ growing needs,” said CPS Energy President and CEO Rudy D. Garza. “We are committed to San Antonio’s Climate Action and Adaptation Plan (CAAP). By exploring this innovative opportunity to produce clean hydrogen using our existing natural gas system, we are advancing our commitment to providing reliable, affordable, and cleaner energy for our community.”

CPS Energy will be one of the few utilities in the country to pilot distributed natural gas pyrolysis and carbon capture technologies. Instead of burning natural gas and releasing or capturing CO₂, Modern Hydrogen uses a process to break down hydrocarbons in natural gas, producing hydrogen and solid carbon. The solid carbon is captured and reused in products like asphalt for infrastructure projects.

“San Antonio is making a smart, Texas-led investment in natural gas and clean energy generation,” added Modern Hydrogen CEO Tony Pan. “San Antonio and CPS Energy are showcasing the promise of American natural gas technology, both for clean energy generation and for better materials to build our infrastructure. They are showing the country what it looks like to lead in reliability, energy security, and affordability.”

“Creating new markets for Texas natural gas is sound energy policy and a long-term investment in the regional economy,” commented Texas Railroad Commission Chairman Jim Wright. “Deployments like this demonstrate that innovative technologies can bring new value to the Eagle Ford and other prolific basins. It’s about keeping American energy competitive, reliable, and local – exactly the kind of leadership Texans expect.”

The project is designed to be scalable, while maintaining reliability and affordable prices for CPS Energy customers. If successful, future deployments of this technology could benefit regional energy hubs, fleet depots, or transit systems to reduce grid strain. “I’ve modelled the limitations of electrification and centralised hydrogen,” said Christine Ehlig-Economides, Professor of Petroleum Engineering at the University of Houston. “By harnessing methane from the existing US pipeline network, distributed pyrolysis is one of the few avenues that can enable ubiquitous local hydrogen generation without massive disruptions.”

Read the article online at: https://www.globalhydrogenreview.com/hydrogen/25072025/cps-energy-and-modern-hydrogen-collaborate-on-an-hydrogen-project/