SHINe story: Entropyst
Entropyst has developed a technology that turns hydrocarbons, including waste gas, into high-value carbon materials, while co-producing hydrogen. Find out how SHINe helped the company better understand its market, identify growth opportunities and strengthen its case for investment.
14 September 2026 | 3 minute read
Introduction to Entropyst
Entropyst develops modular reactor technology. It converts hydrocarbons including flare gas, vented methane, biogas, propane and Liquefied Petroleum Gas (LPG) into high-value solid graphitic carbon materials. The reactor co-produces hydrogen and passes this to the end user for on-site power generation or other applications at no cost.
Oil and gas operators who currently flare or vent associated gas face two problems:
- Vented methane carries a global warming potential about 30 times greater than CO₂, attracting growing regulatory pressure and financial levies
- Flared gas represents a direct destruction of hydrocarbon value
Entropyst's reactor converts this double liability into a commercial asset. The reactor produces solid graphitic carbon while eliminating the emissions that would otherwise attract carbon costs. This makes flaring and venting operators the company's natural market.
Technology approach and system innovation
Entropyst uses Joule-heating catalytic pyrolysis to decompose hydrocarbon feedstocks into solid graphitic carbon and hydrogen. The process does this without combustion and without CO₂ emissions at the point of conversion.
The reactor is compact, modular, and containerised, requiring no major infrastructure. It also allows for deployment directly at the source of waste gas and movement between customer sites. Unlike plasma-based competitors, it requires no rare-earth metals.
A key technical differentiator is the platform’s turnability. Depending on process conditions, a single reactor can produce graphite, carbon nanotubes, carbon black, or carbon fibre precursors.
This flexibility means Entropyst is not tied to a single carbon grade or a single customer base. It can serve a range of markets, from established industrial applications to high-growth advanced materials for batteries, composites, and semiconductors.
Commercial advantage
Entropyst's solid carbon proposition rests on four structural advantages.
Firstly, Entropyst supplies the product domestically in the UK in a market almost entirely dependent on imports, with China controlling 78% of global natural graphite supply and about 50% of global carbon nanotube production.
Secondly, the reactor provides a significantly cleaner production process. Conventional carbon black production generates about 2.8 to 3.5 kg of CO₂ per kg of product. Battery-grade graphite produced in China generates about 9.6 kg of CO₂ per kg. However, Entropyst produces the same materials with zero carbon emissions at the point of conversion.
Thirdly, Entropyst’s reactor offers a competitive price point by using waste gas streams as a low-cost to zero-cost feedstock.
Finally, Entropyst’s proposition offers a broad product range. From a single deployable unit, the reactor offers commodity graphite through to advanced materials essential for the energy transition.
SHINe's role and commercial support
Through the SHINe commercial support programme, the team worked closely with Entropyst. We helped the company to assess market size and growth rates. We did this across carbon black, graphite, carbon nanotubes and graphene nanoplatelets.
We supported Entropyst to identify the most commercially attractive early markets, and analyse the competitive landscape given China's dominance in supply. The result was an independent, evidence-based market picture that Entropyst could take directly into investor conversations.
The assessment confirmed a UK and EU addressable market growing from about $1.4 billion USD today to more than $2 billion USD by 2030. This comes at a weighted average growth rate of about 9.6% per year. Entropyst's estimates their serviceable obtainable market to be £110 million to £325 million per annum over a five-to-eight-year horizon.
Entropyst's technology is gaining commercial momentum, supported by a strong team and commercial approach that addresses growing industry pains. So far, the company has:
- Signed more than 15 non-disclosure agreements (NDAs) with major energy and industrial companies
- Secured three Memorandum of Understanding (MoUs) with carbon offtakers
- Delivered more than £500,000 in non-dilutive grant funding supported by Scottish Enterprise, Net Zero Technology Centre, Scottish Edge and Innovate UK
Contact SHINe for more information
If you’re interested in how we’re supporting companies like Entropyst to explore market opportunities, strengthen their commercial strategy and scale innovative hydrogen solutions, contact the SHINe team.