Methanation Project Consortium Begins Pre-Feed Study for E-Methane Project

Source: Press release Marubeni Corporation 2 min Reading Time

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Marubeni, Peru LNG and Osaka Gas have teamed up to carry out a Pre-Feed study for an e-methane project in Peru. Green hydrogen and CO2 will be used to produce the e-fuel.

Peru’s abundant renewable energy sources and the project site's capacity to produce approximately 60,000 tons of e-methane per year, could allow the project to produce e-methane at a competitive price.(Source:  Marubeni Corporation)
Peru’s abundant renewable energy sources and the project site's capacity to produce approximately 60,000 tons of e-methane per year, could allow the project to produce e-methane at a competitive price.
(Source: Marubeni Corporation)

Tokyo/Japan – Marubeni Corporation, together with Peru LNG, a liquefied natural gas company in which Marubeni participates, and Osaka Gas Co. have signed a joint study agreement to commence a Preliminary-Front End Engineering and Design study (hereinafter, “Pre-Feed”) for a project to produce e-methane from green hydrogen and carbon dioxide (CO2) in Peru (hereinafter, the “Methanation Project”).

As e-methane has the same composition as natural gas (also referred to as “city gas” in Japan), it can utilize existing infrastructure and facilities such as natural gas pipelines, and thus has great potential as a pillar for the realization of gas decarbonization. The 6th Strategic Energy Plan announced by the Japanese Government in October 2021 sets targets for e-methane uptake into existing infrastructure (1 % by 2030 and 90 % by 2050) to promote the transition to carbon neutral gas.

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Marubeni, Peru LNG, and Osaka Gas have been conducting an initial study for the project since July 2022. The initial study investigated the potential for procuring renewable energy and CO2 required to produce approximately 60,000 tons of e-methane per year. As a result, it was confirmed that Peru’s abundant renewable energy sources, mainly solar, wind, and hydropower, and the project site Peru LNG liquefaction terminal’s capacity of sufficient amounts of CO2 to produce approximately 60,000 tons of e-methane per year, could allow the project to produce e-methane at a competitive price.

The Pre-Feed will involve discussions on the conditions for procuring renewable energy and raw materials, including CO2; specification studies for plant construction; and economic evaluations and other detailed feasibility studies. After completion of Pre-Feed, Marubeni, Osaka Gas and Peru LNG will assess the results and evaluate if an investment decision could be made by 2025, with the aim of starting production and sales of e-methane by 2030.

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