Abstract

“Methane hydrate/LNG hybrid-type power generation project” as a strategy for promoting methane hydrate development is proposed in this study. This project has the following advantages.(1) It will be profitable under the current electric power price (19yen/kWh) by expansion of power output and extension of operating life.(2) The risk from methane hydrate development can be reduced.(3) It enables to reduce the CO2 emission and production cost of the hot water injection method by using waste heat in the power plant.However, under the CO2 emission trading system, unit price of the dealings which enables this project to be more profitable than the coal-fired power plant is considerably high: 10, 000 yen/ton-CO2. In order to introduce this project to the electricity market, the other incentives such as preferential tax treatment for domestic energy resource development are also required.

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