Methanation
CO₂-Methanation Technology Development to Decarbonize City Gas
Overview
Osaka Gas has a process technology, which the company once used to manufacture city gas from a petroleum-based raw material. Leveraging this technology, the company is taking on the challenge of developing technology to produce carbon-neutral city gas, with the raw material shifting from the petroleum-based one to CO₂ and hydrogen produced using renewable energy.
Background
Methane serves as an energy carrier for hydrogen and can use the existing infrastructure of city gas. Due to this feature, the material is said to be easily deployed in fields where electrification is difficult. Meanwhile, the Green Growth Strategy announced by the Ministry of Economy, Trade and Industry in collaboration with relevant ministries and agencies sets the goal of 1% injection of e-methane into existing infrastructure by 2030.
Osaka Gas has catalyst technology that can produce e-methane in an energy-efficient manner and design expertise related to scaling up, which the company has acquired since it was manufacturing city gas and alternative natural gas from petroleum-based raw materials. Using these engineering capabilities, Osaka Gas contributes to the technology development project pursued jointly with INPEX. [Project subsidized by New Energy and Industrial Technology Development Organization (NEDO): Technology for realizing pipeline injection using a large CO₂-methanation system under the development of technologies for using CO₂ for gaseous fuels as part of the development of technologies for realizing CO₂ emissions reduction and utilization of “Development of Technologies for Carbon Recycling and Next-Generation Thermal Power Generation”]

What will be done in the NEDO project
Technology Development Description
We plan to conduct a demonstration experiment during a period spanning from the end of fiscal 2025 to fiscal 2026 to produce e-methane using CO₂ collected from the INPEX Nagaoka Field Office and to inject the produced e-methane into the city gas pipeline of INPEX. The CO₂-methanation facilities to be developed in this project are expected to have a e-methane production capacity of approximately 400 Nm³/h, which is currently one of the largest in the world.
Prospects in Detail
We are exploring project development in countries where renewable-based green hydrogen can be produced at low cost, starting with an initial scale of 10,000 Nm³/h and with future commercial expansion to 60,000 Nm³/h in mind, ultimately aiming to import carbon-neutral methane into Japan.

Future business image (Source: INPEX Corporation)
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