Broadly speaking, one key reason is that we've already got the infrastructure in place for using methane (and other hydrocarbons) whereas we do not have this for hydrogen.
Another point is that this really isn't an either-or proposition: if people want hydrogen, then the Terraform electrolyzer can in principle provide it.
[1] Actually "town gas" which was a mixture of hydrogen and carbon monoxide. But I imagine not including the CO would not be a problem.
Unless of course that actually took it below atmospheric pressure so all the forces went in the opposite direction.
Most hydrogen produced today is used onsite to produce something else for this reason. Moving it around just adds cost and complexity.
Terraform seems to have made some progress with hydrolizers. But before people start popping champagne bottles, their synthetic gas still is an order of magnitude more expensive than natural gas. So, the value proposition of replacing one of the cheapest (but dirty) fuels with a clean alternative that is much more expensive is limited. And of course the process of using the captured carbon, releases all of it back to the atmosphere. For most use cases, switching to synthetic gas would push those use cases into the deeply unprofitable region. I.e. you'd be considering many other alternatives before committing to that.
Green hydrogen at the price levels they are citing is ballpark getting to a stage where it could replace grey hydrogen and be worth the extra cost just to clean up existing uses of hydrogen. So, things like fertilizer production and other chemical processes. It's still more expensive but the difference could be bridged with subsidies and incentives.
Which doesn't say much, since practically nobody is doing that.
No it's not. their projections are for $10/kcf.
You can effectively short circuit the existing fossil fuel industry and pull the hydrocarbons from the air instead of the ground to stay carbon neutral. No need to re-invent industry.
On the supply side, you could use things like methane sniffing satellites (https://www.nature.com/articles/d41586-024-00600-z) to find cases of extraction and tax (at first) or arrest (eventually) those participating in it.
At least that’s the idea.
Even better in a lot of ways would be to move to amorphous carbon; generating coal from atmospheric CO2 would be a huge win in transportability especially around safety and reliability dimensions.
That said, if not them, somebody will probably crack that one problem in time. But it's best done as an independent development.
Making methane is the cheapest way to get a transportable, useful output (hydrogen is notoriously difficult to move around, methane is a lot easier, and of course propane etc is a lot easier still).
It escapes easily from any container you put it in and causes hydrogen embrittlement for any metal you try to use to contain it.
Apparently it can be stored in abandoned salt mines and we probably will use them for that eventually but you dont always have one of those handy.
Because hydrogen sucks. Specifically, storing it sucks.
You'll either compress or liquefy. That costs energy. It leaks and embrittles containers. One of the best ways of storing it in a stable manner is to combine with carbon atoms. Voila, natural gas.
More seriously, I'm sure hydrogen will make a valuable contribution to the stationary grid-level energy storage situation. I'm not convinced about other applications.
Higher complexity hydrocarbons likely have higher synthesis costs, and if you want to enter the market, you probably want your pricing as competitive as possible.
Same for the biomass approach.
It is ultimately an approach striving for as much simplicity as possible. That's firmly baked in their culture, too - see their home page :)
Kidding aside: That's the whole point. This is a project that can work without retooling infra all over the world. It's a drop-in replacement to get to carbon-neutral fuel.
This solves problems right now, with limited investment. This isn't about perfection. This is specifically about "works right now, cheap, no impact on the surrounding infrastructure".
(Also, strong doubts on "we'd use hydrogen instead", because storage is a beast. Until that's solved, there is no chance we'd use that)
The fossil fuel uses that are the most difficult to displace involve liquid fuels for transportation; natural gas has limited use there.