Global e-methane (e-NG) production could reach just over 1 bcm by 2030, providing policy, technology and investment decisions can be overcome.
Its rising potential and scaling challenges were discussed in an International Energy Agency (IEA) webinar today.
Keisuke Sadamori, Director of Energy Markets and Security at the IEA, said, “e-methane has the potential to contribute to the decarbonisation of gas networks without the need for retrofitting existing gas infrastructure – such as LNG receiving terminals – and enable the coupling of future methane and hydrogen networks and facilitate their system integration.”
However production cost is mainly dependent on hydrogen production, the procurement of stable and inexpensive renewable power is another key piece, and technology will be vital to delivering large-scale and efficient production sites. Current costs are between $50-200 mmbtu, up to 15 times higher than current LNG spot prices.
Demand creation is also needed to support final investment decisions (FID), along with certification to drive cross-border trade and more efforts to avoid CO2 ‘double counting’.
On the plus side, e-NG’s ‘drop in’ flexibility and role in system integration of low-emission gases are major attributes.
Attendees heard international partnerships are key to its development, with three prominent ones in the southern US (Freeport LNG, Cameron LNG and Live Oak e-NG).
Yves Vercammen, Chief Corporate Officer at Tree Energy Solutions (TES), agreed international tie-ups are vital to delivering e-NG, and highlighted its seven cross-country global partnerships, as well as the work of the e-NG Coalition, whose other partners include Engie, Mitsubishi Corporation, Osaka Gas, Sempra Infrastructure, TES, Tokyo Gas, Toho Gas and TotalEnergies. TES is targeting 1 million tonnes of e-NG by 2030.
He reiterated the importance of hydrogen production costs, which account for around 75% of value chain costs, but expects costs will fall significantly in the coming years, in tandem with falling renewable prices and industry scaling of electrolysers.
“We are convinced the future energy system will comprise a lot of renewable molecules,” he said. “It’s clear that e-NG is gaining a lot of momentum. It’s important to not look at the mass balance, but the efficiency at energy level, and the benefits are it can be immediately used, you don’t need to change anything. We are seeing where we can bring the production costs down, by having smart integration between the electrolysers and methanation, because this is where the key benefits will be.”
Ryota Kuzaki, Division Head, International Certification & Standards Harmonization at the Japan Gas Association, outlined e-NG value chain developments in Japan, which is focusing on e-NG to realise carbon neutral supplies by 2050. It has launched a ‘Clean Gas Certificate’ to highlight the green value of e-methane.
A case study was presented by Nordic Ren-Gas CEO Saara Kujala, who said the first of its six Finnish projects aims to open in Tampere in 2027. A graphic illustrated different project components, from wind-powered renewable electricity, hydrogen production and CO2 capture, to methanation, heat processing and district heating.
