NEWS
Launch of a Demonstration Project for Local Methanation Using Regional Resources
- 12.7.2023 | PRESS RELEASE

On September 27, 2023, the project titled “Demonstration of a Local Production and Consumption Model for Methanation Aimed at Cost Reduction Using Regional Resources” (hereinafter referred to as “demonstration project”), jointly developed by Saibu Gas Co., Ltd., IHI Corporation, JCCL, Inc., Kyushu University, The Japan Gas Association (JGA), Hibiki LNG Corporation, Ltd., Hokkaido Gas Co., Ltd., Hiroshima Gas Co., Ltd., and Nihon Gas Co., Ltd., was officially selected for the Ministry of the Environment’s FY2023 “Regional Co-Creation and Cross-Sectoral Carbon Neutral Technology Development and Demonstration Project (Second Call)”.
This demonstration project aims to reduce the production cost of e-methane(1) and provide environmental value through methanation(2) that utilizes surplus renewable electricity and by-product hydrogen and unused CO₂ from nearby factories—regional resources. The project officially begins on this day, however, the actual demonstration operation for e-methane production is scheduled to take place at the Hibiki LNG terminal in FY2025.
Through steady and continuous efforts toward achieving carbon neutrality by 2050, we will continue to contribute to the sustainable development of local communities.
<Notes>
1. e-methane: A term used for synthetic methane produced from non-fossil energy sources such as green hydrogen. Although e-methane emits CO₂ when burned, it does not increase the net amount of CO₂ in the atmosphere because the CO₂ used as a raw material is captured from sources like exhaust gases.
2. Methanation: A technology that synthesizes methane (CH₄), the main component of city gas, from hydrogen (H₂) and carbon dioxide (CO₂).
Details Regarding the Demonstration Project
Project Title
“Demonstration of a Local Production and Consumption Model for Methanation Aimed at Cost Reduction Using Regional Resources”
Participating Parties and their Roles
| Principal Project Operator | Saibu Gas Co., Ltd. | – Overall project management – Construction, operation, and evaluation of demonstration equipment |
| Joint Project Implementers | IHI Corporation | – Development of e-methane production cost optimization system ※3 – Development of e-methane CO₂ traceability platform ※4 |
| JCCL, Inc. | – Design, development, and demonstration of CO₂ separation and recovery equipment | |
| Kyushu University | ||
| The Japan Gas Association (JGA) | – Operational verification and evaluation of e-methane CO₂ traceability platform ※4 | |
| Hibiki LNG Corporation, Ltd. | – Provision of demonstration field – Operation and evaluation of demonstration equipment |
|
| Hokkaido Gas Co., Ltd. | – Study of local production and consumption models in each region | |
| Hiroshima Gas Co., Ltd. | ||
| Nihon Gas Co., Ltd. |
<Notes>
※3: A system that automatically formulates raw material procurement, transportation, and e-methane production plans to minimize e-methane production costs
※4: A platform capable of issuing certificates (Clean Gas Certificates) and carbon footprint data for e-methane derived from multiple raw material sources
Supporting Local Governments and Partners
– Kitakyushu City / Fukuoka Prefecture / Fukuoka City: Support for demonstration activities, assistance in identifying H₂ and CO₂ procurement sources, and support for raw material provision
– Bridgestone Corporation / Toyota Motor Kyushu, Inc.: Provision of environmental value (proof of origin certification)
Demonstration Site
Hibiki LNG Terminal (20-1 Koyo-machi, Wakamatsu-ku, Kitakyushu City, Fukuoka Prefecture, Japan)
Project Overview