BAKU, Azerbaijan, Feb. 24. Japan’s INPEX
Corporation and Osaka Gas Co., Ltd. have begun demonstration
operations at what they describe as a world’s largest-class
methanation test facility, advancing efforts to commercialize
carbon-neutral city gas, Trend reports via INPEX.

The companies said the move follows the completion of
construction and trial runs of the facility, part of a joint
technology development project aimed at the practical deployment of
a CO₂ methanation system.

The initiative was launched by INPEX in 2021 after being
selected for a subsidy program by Japan’s New Energy and Industrial
Technology Development Organization (NEDO). Construction of the
facility began in 2023.

The plant has a processing capacity of 400 Nm³-CO₂ per hour —
equivalent to the annual gas consumption of roughly 10,000
households. Synthetic methane (e-methane) produced at the site was
successfully injected into a natural gas pipeline on Feb. 20, the
companies said.

Located at the Koshijihara Plant within INPEX JAPAN’s Nagaoka
Field Office in Niigata Prefecture, the facility uses captured CO₂
as feedstock to produce e-methane. During trial operations, the
partners achieved their technical target of producing synthetic
methane with a methane concentration of 96%.

Going forward, part of the output will continue to be injected
into INPEX JAPAN’s natural gas pipeline via the Koshijihara Plant,
while demonstration activities will prioritize safety and
environmental performance.

Under the partnership, INPEX is responsible for overall project
management and plant operations, as well as building expertise in
CO₂ methanation, scaling up the reaction system and assessing
deployment potential in other regions.

Osaka Gas is leading development of the reaction process
technology, leveraging its energy-efficient catalytic technologies
and scale-up design expertise to further optimize equipment and
processes.

The facility received certification as a clean gas production
plant under the Clean Gas Certificate System supported by the Japan
Gas Association on Jan. 27, 2026. The certification allows the
environmental value of the synthetic methane to be issued as
certificates following equivalent verification.

INPEX said in its Vision 2035 strategy, announced in February
2025, that it aims to advance low-carbon solutions centered on
carbon capture and storage (CCS) and hydrogen as key growth
pillars.

Meanwhile, the Daigas Group, parent of Osaka Gas, outlined in
its “Energy Transition 2050” initiative plans to expand
technologies and services supporting a decarbonized society.

Through the joint project, the companies aim to accelerate the
early commercial deployment of carbon-neutral city gas produced via
CO₂ methanation.

AloJapan.com