Unlocking the Potential of e-Methane: Balancing Challenges and Opportunities for Decarbonization
Key Ideas
  • Global e-methane production could reach over 1 bcm by 2030, aiding in the decarbonization of gas networks without infrastructure retrofitting.
  • Challenges include production costs depending on hydrogen production, demand creation, certification for cross-border trade, and avoiding CO2 'double counting'.
  • International partnerships, like those in the southern US and global coalitions, play a crucial role in advancing e-NG development and scaling.
  • Key stakeholders emphasize the need for technology advancements, cost reduction strategies, and the importance of renewable power sources in achieving efficient large-scale e-NG production.
The International Energy Agency (IEA) recently discussed the rising potential and scaling challenges of e-methane (e-NG) production in a webinar. E-methane has the capability to aid in decarbonizing gas networks without requiring costly retrofitting of existing infrastructure, providing a pathway to couple future methane and hydrogen networks. However, challenges such as production costs linked to hydrogen production, demand creation, certification for trade, and avoiding CO2 double counting need addressing. The current cost of e-NG production ranges from $50-200 mmbtu, significantly higher than LNG spot prices. International partnerships, like those in the southern US and global coalitions, are highlighted as crucial for the development and scaling of e-NG. Stakeholders emphasize the importance of technology advancements, reducing production costs, and securing stable and inexpensive renewable power sources for large-scale and efficient e-NG production. The efficiency and system integration benefits of e-NG, along with its 'drop in' capability, are key attributes of this renewable energy source. With a focus on hydrogen production costs and expectations of cost reduction in the future, there is optimism for the increased adoption of renewable molecules in the energy system. Various industry experts stress the importance of smart integration between electrolysers and methanation for cost reduction and efficiency. Countries like Japan are actively pursuing e-NG to achieve carbon-neutral supplies by 2050, with initiatives such as the 'Clean Gas Certificate'. The article also presents a case study from Nordic Ren-Gas detailing plans for e-NG projects in Finland, showcasing the diverse components involved in this renewable energy value chain.
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