World's Largest E-Methane Production Methanation Test Facility Unveiled to Media for the First Time
Osaka Gas Co., Ltd. and INPEX Corporation have jointly unveiled one of the world's largest e-methane production test facilities to the media. Demonstration operations began in February 2026, including the injection of synthesized methane into natural gas pipelines. This initiative aims to achieve carbon neutrality for city gas by leveraging existing infrastructure and minimizing social costs.
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- 📰 Published: April 20, 2026 at 19:00
- 🔍 Collected: April 24, 2026 at 09:01 (86h 1m after Published)
- 🤖 AI Analyzed: April 24, 2026 at 09:05 (4 min after Collected)
Osaka Gas Co., Ltd. (President: Masataka Fujiwara, hereinafter "Osaka Gas"), in collaboration with INPEX Corporation (President: Takayuki Ueda, hereinafter "INPEX"), under a grant project adopted by INPEX from the New Energy and Industrial Technology Development Organization (NEDO), commenced demonstration operations in February 2026 at one of the world's largest* test facilities, capable of producing 400 Nm3-CO2/h (equivalent to the annual gas consumption of approximately 10,000 households). The synthesized methane (e-methane) produced was also injected into natural gas pipelines. We are pleased to announce that the test facility has now been unveiled to the media for the first time.
*Based on facility production capacity, according to e-NG Coalition (international alliance for e-methane).
From left: Hiroshi Ochiai, Executive Officer and General Manager of Low Carbon Solutions Division, INPEX; Norio Hatanaka, Executive Officer and General Manager of Gas Production and Engineering Division, Osaka Gas.
Daigas Group's Challenge for Carbon Neutrality: https://www.daigasgroup.com/cnv/
What is the next-generation fuel "e-methane"?
"E-methane" is a future city gas produced by reusing CO2 from the atmosphere or emitted from factories and sewage, and reacting it with hydrogen. Although CO2 is emitted during combustion, the same amount of CO2 is recovered during the production stage, making it a "carbon-neutral" mechanism that recycles CO2.
Furthermore, since e-methane has almost the same composition as current city gas, existing infrastructure assets such as LNG carriers, receiving terminals, underground gas pipelines, and household appliances like stoves and water heaters can be utilized as they are. This allows for the advancement of carbon neutrality "unbeknownst to many" while minimizing social costs, without forcing new capital investment.
Daigas Group aims to introduce 1% e-methane or similar into the city gas supplied by fiscal year 2030.
"E-methane" is the key to decarbonizing city gas.
Project Overview
The test facility consists of raw material supply, methanation, utility equipment, and more. E-methane is produced using CO2 separated and recovered within INPEX JAPAN's Nagaoka Field (Nagaoka City, Niigata Prefecture) Koshijihara Plant. Since the technical development target of 96% methane concentration e-methane was achieved during the test facility's trial operation, a portion of the produced e-methane was injected into INPEX JAPAN's natural gas pipelines via the Koshijihara Plant. This test facility will continue to verify technology scale-up for large-scale production and catalyst durability.
NEDO
Grant Project Name
Development of Practical Technology for Pipeline Injection Using Large-Scale CO2-Methanation System
Structure
・INPEX Corporation (Grant recipient from NEDO)
・Osaka Gas Co., Ltd. (Commissioned by INPEX)
・Nagoya University, Tokai National Higher Education and Research System (Commissioned by INPEX)
Period
Second half of FY2021 to end of FY2026
Location
Test facility constructed connected to INPEX Nagaoka Field Koshijihara Plant
Significance
Early social implementation through large-scale production (400 m3/h, equivalent to 10,000 households)
Area
10,000㎡
Overview
・Development of reaction simulation technology aimed at understanding the behavior of CO2-methanation reaction using catalysts.
・Development of large-scale CO2-methanation reaction process technology aimed at evaluating and establishing basic process performance and long-term catalyst durability.
・Study on applicability, such as scaling up reaction systems for commercial scale, and evaluating applicability and economic viability.
Comments
—Norio Hatanaka, Executive Officer and General Manager of Gas Production and Engineering Division, Osaka Gas
"Amid accelerating global efforts towards carbon neutrality, our company is actively considering the decarbonization of city gas, and participation in this demonstration is part of that effort. Our biggest mission in this demonstration, in addition to acquiring engineering data for future scale-up, is to evaluate and confirm the durability and reliability of our independently developed catalyst in a real environment. Through this demonstration, we will accelerate the early social implementation of e-methane."
—Hiroshi Ochiai, Executive Officer and General Manager of Low Carbon Solutions Division, INPEX
"In this methanation demonstration project, which we have been advancing since 2021 in collaboration with Osaka Gas, aiming to achieve future carbon neutrality, we have successfully produced synthesized methane (e-methane) at one of the world's largest methanation facilities. We are very pleased that many media representatives were able to see the facility."
*Based on facility production capacity, according to e-NG Coalition (international alliance for e-methane).
From left: Hiroshi Ochiai, Executive Officer and General Manager of Low Carbon Solutions Division, INPEX; Norio Hatanaka, Executive Officer and General Manager of Gas Production and Engineering Division, Osaka Gas.
Daigas Group's Challenge for Carbon Neutrality: https://www.daigasgroup.com/cnv/
What is the next-generation fuel "e-methane"?
"E-methane" is a future city gas produced by reusing CO2 from the atmosphere or emitted from factories and sewage, and reacting it with hydrogen. Although CO2 is emitted during combustion, the same amount of CO2 is recovered during the production stage, making it a "carbon-neutral" mechanism that recycles CO2.
Furthermore, since e-methane has almost the same composition as current city gas, existing infrastructure assets such as LNG carriers, receiving terminals, underground gas pipelines, and household appliances like stoves and water heaters can be utilized as they are. This allows for the advancement of carbon neutrality "unbeknownst to many" while minimizing social costs, without forcing new capital investment.
Daigas Group aims to introduce 1% e-methane or similar into the city gas supplied by fiscal year 2030.
"E-methane" is the key to decarbonizing city gas.
Project Overview
The test facility consists of raw material supply, methanation, utility equipment, and more. E-methane is produced using CO2 separated and recovered within INPEX JAPAN's Nagaoka Field (Nagaoka City, Niigata Prefecture) Koshijihara Plant. Since the technical development target of 96% methane concentration e-methane was achieved during the test facility's trial operation, a portion of the produced e-methane was injected into INPEX JAPAN's natural gas pipelines via the Koshijihara Plant. This test facility will continue to verify technology scale-up for large-scale production and catalyst durability.
NEDO
Grant Project Name
Development of Practical Technology for Pipeline Injection Using Large-Scale CO2-Methanation System
Structure
・INPEX Corporation (Grant recipient from NEDO)
・Osaka Gas Co., Ltd. (Commissioned by INPEX)
・Nagoya University, Tokai National Higher Education and Research System (Commissioned by INPEX)
Period
Second half of FY2021 to end of FY2026
Location
Test facility constructed connected to INPEX Nagaoka Field Koshijihara Plant
Significance
Early social implementation through large-scale production (400 m3/h, equivalent to 10,000 households)
Area
10,000㎡
Overview
・Development of reaction simulation technology aimed at understanding the behavior of CO2-methanation reaction using catalysts.
・Development of large-scale CO2-methanation reaction process technology aimed at evaluating and establishing basic process performance and long-term catalyst durability.
・Study on applicability, such as scaling up reaction systems for commercial scale, and evaluating applicability and economic viability.
Comments
—Norio Hatanaka, Executive Officer and General Manager of Gas Production and Engineering Division, Osaka Gas
"Amid accelerating global efforts towards carbon neutrality, our company is actively considering the decarbonization of city gas, and participation in this demonstration is part of that effort. Our biggest mission in this demonstration, in addition to acquiring engineering data for future scale-up, is to evaluate and confirm the durability and reliability of our independently developed catalyst in a real environment. Through this demonstration, we will accelerate the early social implementation of e-methane."
—Hiroshi Ochiai, Executive Officer and General Manager of Low Carbon Solutions Division, INPEX
"In this methanation demonstration project, which we have been advancing since 2021 in collaboration with Osaka Gas, aiming to achieve future carbon neutrality, we have successfully produced synthesized methane (e-methane) at one of the world's largest methanation facilities. We are very pleased that many media representatives were able to see the facility."