Nagaoka Methanation Project Leverages CO₂NNEX® Digital Platform for e-Methane Clean Gas Certificate Management and Transfer

September 11, 2025

Japan Pioneers Carbon-Neutral Energy Wiht E-Methane Production

Nagaoka City, niigata Prefecture – In a significant step towards a sustainable energy future, a collaborative effort between INPEX, Osaka Gas, and Mitsubishi Heavy Industries (MHI) is demonstrating the viability of producing e-methane from captured carbon dioxide and hydrogen. This innovative process aims to create a localized, carbon-neutral energy source and is poised to reshape the energy landscape.

Converting Waste into Fuel: The Nagaoka Methanation demonstration

The project, dubbed the Nagaoka Methanation Demonstration, utilizes hydrogen and carbon dioxide recovered from the Koshijihara Plant at the INPEX Nagaoka Field Office. These resources are than converted into e-methane, a synthetic natural gas, and directly injected into INPEX’s existing natural gas pipeline for distribution to consumers. This process represents a closed-loop system, minimizing carbon emissions and maximizing resource utilization.

Initiatives using CO₂NNEX®

Tracking Environmental value With CO₂NNEX®

Central to the project’s success is the implementation of the CO₂NNEX® platform, developed by MHI. This platform provides thorough visualization and management of the entire e-methane production chain, including the tracking of hydrogen and carbon dioxide sources. Moreover, it will facilitate the management of Clean Gas certificates, verifying the environmental benefits of this innovative fuel source.

Clean Gas Certificates: A New Era of Carbon accounting

The companies involved are also exploring a certificate system for Clean Gas Certificates, expanding beyond the existing framework for liquid fuels like Sustainable Aviation fuel (SAF). This system will allow for the accurate quantification and trading of the environmental value associated with e-methane and biomethane, incentivizing further investment in carbon-neutral technologies. According to a recent report by the International Energy Agency, investment in carbon capture technologies needs to increase sixfold by 2030 to meet climate goals.

Component	Role in Process
Hydrogen (H2)	Raw material for e-methane production.
Carbon Dioxide (CO2)	Raw material for e-methane production, captured from existing sources.
E-methane	Synthetic natural gas produced from H2 and CO2.
CO2NNEX®	Platform for tracking and managing the carbon lifecycle.
Clean Gas Certificates	Verification of the environmental benefits of e-methane.

Future Implications and Industry Collaboration

This demonstration project is being supported by Japan’s New energy and Industrial Technology Development Institution (NEDO), showcasing the national commitment to renewable energy solutions. japan’s Ministry of Economy, Trade and Industry (METI) is also preparing for the broader implementation of a clean fuel certificate system by 2026.

INPEX, osaka Gas, and MHI all have significant commitments to carbon neutrality. INPEX aims to provide lower-carbon energy solutions, while Osaka Gas focuses on technological development for a carbon-neutral society. MHI is positioned as a leader in carbon capture, utilization, and storage (CCUS) technologies.

Did You Know? E-methane, when burned, doesn’t increase the net amount of CO₂ in the atmosphere, as the CO₂ used in its production was previously captured.

Pro Tip: Understanding the lifecycle assessment of different energy sources is crucial for making informed decisions about sustainability.

The Growing Importance of E-Methane

E-methane is gaining traction globally as a key component in the energy transition. Its compatibility with existing natural gas infrastructure makes it a cost-effective solution for decarbonizing the gas sector. Beyond Japan, similar projects are underway in Europe and North America.The potential of e-methane extends to various applications, including power generation, heating, and transportation.

Frequently asked Questions About E-Methane

• What is e-methane? E-methane is a synthetic natural gas produced by combining captured carbon dioxide with hydrogen.
• How does e-methane contribute to carbon neutrality? By utilizing captured CO₂, e-methane prevents it from entering the atmosphere, resulting in a net-zero carbon emission cycle.
• What is the role of Clean Gas Certificates? These certificates verify and quantify the environmental benefits of e-methane, incentivizing its production and use.
• What is CO₂NNEX®? CO₂NNEX® is a platform developed by MHI for visualizing and managing the CO₂ supply chain.
• Is e-methane a viable alternative to traditional natural gas? Yes, e-methane can be blended with or replace traditional natural gas in existing infrastructure.

Will this project in Nagaoka City mark a turning point in the global pursuit of carbon-neutral energy solutions? what other innovative technologies hold the key to a sustainable future?

Share your thoughts in the comments below and join the conversation!

How does the Nagaoka Methanation Project’s use of CONNEX® address the challenges of verifying and tracking the renewable origin of e-methane compared to traditional methods?

The Rise of e-Methane and Power-to-Gas Technologies

The global push for decarbonization is driving notable investment in power-to-gas (PtG) technologies, wiht e-methane – synthetic natural gas produced from renewable energy and captured carbon dioxide – emerging as a key component. This synthetic gas offers a drop-in replacement for conventional natural gas, utilizing existing infrastructure while drastically reducing carbon emissions. The Nagaoka Methanation Project in Japan exemplifies this trend,and its adoption of the CO₂NNEX® digital platform marks a significant step forward in the clear and efficient management of renewable gas certificates.

Understanding the Nagaoka Methanation Project

Located in Nagaoka City,Niigata Prefecture,the nagaoka Methanation Project is a pioneering initiative focused on producing e-methane through the sabatier process.This process combines captured CO₂ with hydrogen generated from renewable electricity (primarily solar and wind power) to create methane (CH₄). The project aims to demonstrate the viability of large-scale e-methane production and contribute to Japan’s enterprising carbon neutrality goals.

Key aspects of the project include:

CO₂ Source: Utilizing captured CO₂ from local industrial sources, minimizing the carbon footprint.

Renewable Hydrogen: Employing electrolysis powered by renewable energy sources to produce green hydrogen.

Methanation Capacity: Designed for a substantial production capacity,contributing significantly to regional gas supply.

Grid Injection: The produced e-methane is injected into the existing natural gas grid, ensuring seamless integration.

CO₂NNEX®: A Digital Backbone for e-Methane Certification

The core challenge in scaling e-methane production lies in accurately tracking and verifying the renewable origin of the gas. This is where the CO₂NNEX® digital platform comes into play. Developed by Energy Web, CO₂NNEX® provides a secure and transparent system for:

Certificate Issuance: Automatically generating Renewable gas Certificates (RGCs) based on verified e-methane production data. These certificates represent the environmental attributes of the e-methane, proving its renewable origin.

Certificate Tracking: Utilizing blockchain technology to ensure the immutable and auditable tracking of rgcs throughout their lifecycle. This prevents double-counting and ensures openness.

Certificate Transfer: Facilitating the seamless transfer of rgcs between producers,traders,and end-users,enabling a robust market for renewable gas.

Data Management: providing a centralized repository for all relevant data related to e-methane production, including CO₂ source, hydrogen production, and methanation efficiency.

Benefits of Utilizing CO₂NNEX® in the Nagaoka Project

Implementing CO₂NNEX® within the Nagaoka Methanation Project delivers several key benefits:

Enhanced transparency: blockchain-based tracking builds trust and confidence in the renewable origin of the e-methane.

streamlined Compliance: Automated certificate issuance simplifies compliance with renewable gas regulations and standards.

Market Access: Facilitates access to growing markets for renewable gas and RGCs, unlocking new revenue streams.

reduced Administrative Costs: Automates manual processes, reducing administrative burden and costs associated with certificate management.

Improved Data Accuracy: Ensures data integrity and accuracy, leading to more reliable reporting and decision-making.

The Role of Renewable Gas Certificates (RGCs)

Renewable Gas Certificates (RGCs) are crucial for verifying and monetizing the environmental benefits of e-methane. Each RGC typically represents 1 MWh of renewable thermal energy. They function similarly to Renewable Energy Certificates (RECs) used in the electricity sector.

Here’s how RGCs work within the CO₂NNEX® framework:

1. Production Verification: The Nagaoka project’s e-methane production is independently verified against established standards.
2. Certificate Generation: CO₂NNEX® automatically generates RGCs based on the verified production volume.
3. Certificate registration: The RGCs are registered on the Energy Web blockchain, creating a unique and immutable record.
4. Certificate trading: RGCs can be traded on dedicated marketplaces, allowing companies to offset their carbon footprint or meet renewable energy targets.
5. Certificate Retirement: End-users retire the RGCs to claim the environmental benefits of the e-methane they consume.

Implications for the Future of e-Methane and PtG

The Nagaoka Methanation Project, coupled with the CO₂NNEX® platform, serves as a blueprint for scaling e-methane production globally. This prosperous implementation demonstrates the feasibility of:

decarbonizing the gas Sector: replacing fossil natural gas with renewable e-methane significantly reduces greenhouse gas emissions.

Leveraging Existing Infrastructure: Utilizing existing natural gas pipelines and storage facilities minimizes infrastructure investment.

Creating a Circular Carbon Economy: Capturing and utilizing CO₂ as a feedstock for e-methane production promotes a circular economy.

* Driving Innovation in PtG Technologies: Encouraging further research and progress in electrolysis