CPS Energy has partnered with clean energy startup Modern Hydrogen to pilot methane pyrolysis technology that produces clean H₂ and solid carbon from natural gas without generating CO₂. The modular MH500 unit generates about 500 kg/d of H₂, using a portion of the H₂ for the heat required in the process. CPS Energy plans to test H₂ blending at one of its natural gas plants, though the exact ratio remains undecided. The solid carbon byproduct will be repurposed in infrastructure materials like asphalt.

Unlike traditional steam methane reforming, this approach avoids CO₂ emissions and leverages existing natural gas infrastructure, offering a workaround to the costly development of H₂ pipelines. CPS Energy joins a small group of U.S. utilities testing distributed H₂ and carbon capture solutions. Modern Hydrogen is also running pilots in Florida for onsite power generation and in Oregon for blending H₂ into natural gas distribution systems.