Marubeni Corp. (Tokyo), together with PERU LNG S.R.L., 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 (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, 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.
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.
Marubeni aims to make both medium- and long-term contributions to global climate change action in accordance with the Marubeni Long-Term Vision on Climate Change formulated in March 2021 and the Green Strategy in the Mid-Term Management Strategy “GC2024,” formulated in February 2022.