CPS Energy and Modern Hydrogen Partner to Advance Clean Hydrogen Technology in Texas
CPS Energy has announced a strategic collaboration with Modern Hydrogen to launch a pioneering clean hydrogen pilot project in San Antonio, Texas. The initiative aims to increase grid reliability, reduce carbon emissions, and support CPS Energy’s commitment to a diversified and sustainable energy portfolio, as outlined in its 2027 Vision.
The project will explore natural gas decarbonisation by piloting Modern Hydrogen’s innovative technology, which converts natural gas into clean hydrogen and solid carbon—without emitting or capturing CO₂. This distributed hydrogen production method, known as natural gas pyrolysis, allows for localised hydrogen generation while repurposing the captured carbon in materials like asphalt for infrastructure.
As one of the first utilities in the U.S. to test this technology, CPS Energy is leading efforts to modernise energy systems using existing infrastructure. The project addresses growing energy demand in Texas driven by population growth and electrification, while aligning with the San Antonio Climate Action and Adaptation Plan (CAAP).
“We need more energy—including natural gas—to meet our customers’ needs,” said CPS Energy President & CEO Rudy D. Garza. “This project supports our goals for reliable, affordable, and cleaner energy through clean hydrogen innovation.”
Modern Hydrogen CEO Tony Pan emphasized the value of Texas-based innovation:
“San Antonio is making a smart investment in natural gas and clean hydrogen. This partnership demonstrates that American hydrogen technology can deliver energy reliability, security, and economic value.”
Texas Railroad Commission Chairman Jim Wright added:
“This project shows how natural gas innovation can strengthen our economy and energy independence while creating new markets for Texas resources.”
Energy experts see this distributed clean hydrogen technology as a scalable solution for fleet depots, regional energy hubs, and transit systems. According to University of Houston engineering professor Christine Ehlig-Economides, “Distributed pyrolysis using the existing U.S. pipeline network is one of the few scalable paths to local hydrogen production without overhauling infrastructure.”
This CPS Energy–Modern Hydrogen partnership is a key step in deploying advanced hydrogen energy technologies to support a reliable, low-carbon energy future in Texas and beyond.
