Japanese power & energy supplier JERA has received notice of acceptance of its grant application to conduct a feasibility study on CO2 capture and methanation in the United States under the New Energy and Industrial Technology Development Organization’s program. The purpose of the study, with an eye to pursuing the CO2-free methane gas production business in the future, is to investigate the potential for such a business by identifying issues and acquiring basic information that will form the basis for business feasibility evaluations. Specifically, JERA plans to evaluate the potential, including area, scale, and economic feasibility, of developing a methanation business that would produce CO2-free methane gas from hydrogen generated using low-cost renewable energy and CO2 captured from existing thermal power plants and refineries in the United States. Because methanation enables the production of CO2-free LNG from CO2-free methane gas, JERA believes it to be a promising technology for utilizing existing LNG-related infrastructure to achieve low-cost decarbonization in Japan and other countries around the world. JERA will conduct the study from June 2021 to February 2022, leveraging the expertise of its subsidiary, JERA Americas Inc., which promotes renewable energy development and hydrogen utilization in addition to its gas-fired power generation and LNG production businesses in the United States.