Analysis Report on R&D Progress of Hydrogen-Carbon Co-Production Technology in Q1 2026

Based on the latest information, this report provides a systematic analysis of the R&D progress of the hydrogen-carbon co-production technology developed by the Chinese Academy of Sciences in Q1 2026.

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The team led by Yu Qingkai, a researcher at the Shanghai Institute of Microsystem and Information Technology, Chinese Academy of Sciences, and Chairman of Shanghai Hydrogen Field New Material Technology Co., Ltd., has been continuously tackling key issues in fields such as natural gas cracking for hydrogen-carbon co-production and graphene wafer preparation [1]. This technology has received support from the National Key R&D Program and has become an important path for green hydrogen-carbon production [1].

Yu Qingkai returned to China in 2018 to engage in the R&D and industrialization of natural gas cracking for hydrogen-carbon co-production technology. He stated: “China is launching large-scale underlying innovation, and what I am doing is innovative work.” [1] The breakthrough in this technical direction aligns with China’s major demand for clean energy transformation under the background of the “Dual Carbon” strategy.

The core of hydrogen-carbon co-production technology is to simultaneously produce high-purity hydrogen and graphite under almost pollution-free conditions through natural gas cracking process [1]. Compared with traditional highly polluting hydrogen and carbon production processes, this technology has the following significant advantages:

• Zero Carbon Emissions
  : Avoids greenhouse gas emissions and realizes green high-value utilization of methane resources [1]
• Co-Product Output
  : Simultaneously produces high-purity hydrogen and high-purity carbon materials (graphite, graphene) [1]
• Efficiency Advantage
  : Has greater cost and efficiency advantages in distributed scenarios such as chemical plants and hydrogen refueling stations [1]

Currently, the team is focusing on overcoming the technical bottleneck of continuous system operation [1]. The continuous operation time of cracking reactors is a key indicator for the industrialization of this technology, directly related to the feasibility and economic efficiency of large-scale production.

Researcher Yu Qingkai is focusing on solving the problem of continuous operation of cracking reactors, with the goal of increasing the stable continuous operation time to one month [1]. The achievement of this goal will mark a key step for the technology to move from the laboratory stage to industrialization.

Based on technical principles and industry experience, the R&D for continuous operation of cracking reactors mainly involves the following core directions:

1. Reactor Structure Optimization
   : Improve the internal structure of reactors to enhance heat transfer efficiency and reaction uniformity
2. Catalyst System Improvement
   : Develop a high-efficiency and stable catalyst system to extend the activity retention period
3. Coking Inhibition Technology
   : Solve the problem of coke deposition during cracking and reduce the frequency of shutdowns for cleaning
4. Process Control System
   : Establish precise temperature, pressure and flow control systems to ensure stable operation

According to the team’s plan, it is expected to promote the industrialization of the technology within the next six months to two years [1]. The specific milestones include:

Phase	Time	Goal
Technical R&D Phase	H1 2026	Achieve stable continuous operation time of cracking reactors of one month
Demonstration Application Phase	2026	Implement demonstration application in Sichuan Province
Large-Scale Promotion Phase	2026-2027	Promote distributed hydrogen production nationwide

The team plans to implement a demonstration application in Sichuan Province, which is rich in natural gas resources, in 2026 [1]. The reasons for choosing Sichuan as the first demonstration base include:

• Resource Endowment
  : The Sichuan Basin is rich in natural gas resources with sufficient raw material supply
• Industrial Foundation
  : The local chemical industry has a solid foundation with high demand for hydrogen
• Policy Support
  : Local governments provide policy preferential support for the industrialization of clean energy technologies

Yu Qingkai stated: “In terms of market layout, we plan to carry out large-scale production in natural gas producing areas, and also promote nationwide distributed hydrogen production in the chemical industry and hydrogen refueling stations with high hydrogen demand.” [1] This strategy reflects the dual-track layout concept of “local raw material conversion + distributed deployment on the demand side.”

Two directions of market layout:

1. Large-Scale Production in Natural Gas Producing Areas
   : Rely on raw material advantages to build large-scale production bases
2. Distributed Hydrogen Production Network
   : Deploy miniaturized devices at hydrogen-consuming terminals such as chemical parks and hydrogen refueling stations

Compared with traditional hydrogen production technologies, natural gas cracking hydrogen-carbon co-production technology has significant advantages:

Technology Type	Carbon Emission Status	Technology Maturity	Cost Level (RMB/kg)
Coal Gasification Hydrogen Production	20-30 kg CO₂/kg H₂	High	6-15
Natural Gas Steam Reforming Hydrogen Production	10-15 kg CO₂/kg H₂	High	10-20
Water Electrolysis Hydrogen Production	Zero Emissions (Green Power)	Medium	15-40
Natural Gas Cracking Hydrogen-Carbon Co-Production	Near-Zero Emissions	In Development	Competitive [2]

The green attributes of this technology are reflected in:

• Direct Emission Reduction
  : Avoids CO₂ emissions in traditional hydrogen production processes
• Product Carbon Sequestration
  : The produced graphite/graphene can be used as a carbon sink carrier
• Energy Efficiency
  : The co-production mode improves raw material utilization efficiency and reduces energy consumption per unit of product

This technology has received multi-level policy support:

1. National Key R&D Program Support
   : Reflects national recognition of this technical route [1]
2. Shanghai Sci-Tech Innovation Platform Support
   : Relying on the construction of Shanghai International Sci-Tech Innovation Center, it has received support from agglomeration effects [1]
3. Local Policy Supporting Measures
   : It is expected to receive special policy support in the demonstration application areas

The development of hydrogen-carbon co-production technology will drive collaboration in the upstream and downstream industrial chains:

• Upstream
  : Natural gas extraction and purification equipment
• Midstream
  : Cracking reactors and control systems
• Downstream
  : Hydrogen storage and transportation, hydrogen refueling stations, graphite material applications

Yu Qingkai was awarded the “Outstanding Person of Shanghai Overseas Chinese Community” in 2025, hoping to use this to promote social attention to sci-tech innovation and cross-border exchanges [1]. He values the agglomeration effect brought by the construction of Shanghai International Sci-Tech Innovation Center—gathering of high-end talents, convenient resource flow, and diverse and open living environment, which provides a high-quality environment for innovation and entrepreneurship [1].

1. Improvement of Technology Maturity
   : The continuous operation time of cracking reactors needs to be increased from the current level to the target of one month [1]
2. Cost Optimization
   : Achieve economic feasibility without subsidies
3. Scale-Up
   : Engineering challenges of scaling up from laboratory scale to industrial scale

Looking forward to the future, the development of this technology will show the following trends:

: Complete technical R&D, implement demonstration application, and verify technical feasibility

: Promote large-scale production and form a replicable business model

: Become an important part of the hydrogen energy industry and support the achievement of the “Dual Carbon” goals

In Q1 2026, the team led by Yu Qingkai from the Shanghai Institute of Microsystem and Information Technology, Chinese Academy of Sciences, has made significant progress in the field of hydrogen-carbon co-production technology. The R&D on the continuous operation time of cracking reactors is the core challenge for the current industrialization of the technology, with the goal of increasing the stable continuous operation time to one month [1]. This technology realizes the co-production of hydrogen and graphite through natural gas cracking, achieving green high-value utilization of methane resources under almost pollution-free conditions, and has important economic value and environmental significance [1].

It is expected that the technology will be industrialized within the next six months to two years, and a demonstration application will be launched in Sichuan Province in 2026 [1]. Under the background of the “Dual Carbon” strategy, hydrogen energy will become a core sector of energy transformation, and hydrogen-carbon co-production technology, as an important path for green hydrogen-carbon production, is expected to provide key technical support for China’s energy transformation and the achievement of carbon neutrality goals.

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[1] China News Service - “Chinese Scientists Break Through Hydrogen-Carbon Co-Production Technology, Pollution-Free Hydrogen Production Supports Energy Transformation” (https://www.chinanews.com.cn/gn/2026/01-18/10554059.shtml)

[2] Outlook on Industrial Low-Carbon Technologies Under China’s Carbon Neutrality Goal - Chinese Academy for Environmental Planning, Ministry of Ecology and Environment (http://www.caep.org.cn/sy/tdftzhyjzx/zxdt/202507/W020250730376013070177.pdf)