Techno-Economic Evaluation of Palladium-Membrane Reactors for Industrial-Scale Methane Pyrolysis

This study assesses the techno-economic viability of a palladium-based membrane reactor for catalytic decomposition (pyrolysis) of methane. A process simulation approach is employed to evaluate the reactor’s performance and to design a complete catalytic decomposition plant. The membrane-based process is benchmarked against conventional steam methane reforming (SMR) in terms of the levelized cost of hydrogen (LCOH) production. Results indicate that the membrane reactor process achieves an approximately 5% lower LCOH than SMR, primarily due to reduced capital costs and the elimination of carbon capture and storage (CCS) requirements. Additionally, the recovery and sale of valuable carbon byproducts─such as carbon black─further improve the economic feasibility of the process. From an environmental perspective, the membrane process presents a cleaner alternative by avoiding CO2 emissions and generating solid carbon instead. Overall, the palladium-based membrane reactor demonstrates strong potential as a transitional pathway toward more sustainable hydrogen production.