Mitsubishi invests in Monolith Materials to scale “Turquoise” hydrogen

In Japan, Mitsubishi Heavy Industries completed a capital investment in Monolith Materials, which has innovative technology enabling the production of hydrogen and carbon black from methane via methane pyrolysis. Monolith Materials is the first U.S. manufacturer to produce a clean, industry-transforming hydrogen known as “turquoise hydrogen” on a commercial scale. Earlier this fall, Monolith Materials announced it would be the first U.S. manufacturer to produce clean ammonia and hydrogen at scale, serving as the United States’ first viable entry into the global clean hydrogen market. This announcement drew the attention of several major ESG and chemical investors, including Mitsubishi Heavy Industries.

Monolith Materials, which was founded in 2012, developed a process technology that converts natural gas into clean hydrogen and a solid carbon material called carbon black, a critical raw material in the automotive and industrial sectors. The company is currently in the operating stage of Olive Creek 1 (OC1), its first commercial-scale emissions-free production facility designed to produce approximately 14,000 metric tons of carbon black annually along with clean hydrogen. In addition to producing carbon black and clean hydrogen, the company recently announced its plans to produce emissions-free ammonia at a second phase production facility known as Olive Creek 2 (OC2) in Hallam, Nebraska. Combined, Monolith Materials’ production of turquoise hydrogen, emissions-free ammonia and carbon black are expected to reduce greenhouse gas emissions by as much as 1 million metric tons per year compared to traditional manufacturing processes.

By investing in Monolith, MHI Group looks to strengthen and diversify its hydrogen value chain. Investing in hydrogen has seen a recent surge in interest from investors as excitement about hydrogen as an energy source builds. Analysis cited in the European Union’s new hydrogen strategy published in July predicts hydrogen could meet 24% of world energy demand by 2050. Barclays analysts think the market could grow from 70 million tonnes a year to as much as 800 million tonnes by the same date.