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Live Oak Starts Competitive FEED for Nebraska e-Methane

Published by Todd Bush on September 2, 2026

The Live Oak consortium has launched front-end engineering design for its e-methane facility in Norfolk, Nebraska. Two competing engineering contractors are now running parallel FEED studies. The project targets a 2027 execution decision and commercial operations by 2030.

Key Facts

  • FEED launched August 28, 2026, per the Live Oak consortium joint statement
  • Location: Norfolk, Nebraska
  • Consortium: TotalEnergies (33.35%), TES (33.35%), Osaka Gas + Toho Gas + ITOCHU (33.3% combined)
  • FEED contractors: KBR (US) and Técnicas Reunidas (Spain), chosen through a competitive process
  • Parallel FEED studies, one concept selected for execution
  • Target electrolysis capacity: approximately 250 megawatts
  • Target methanation capacity: 75,000 tonnes per year
  • FID targeted: 2027
  • Commercial operations target: 2030
  • Primary offtakers: Osaka Gas and Toho Gas, confirmed in the December 2, 2025 TotalEnergies announcement

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What Is e-NG, and Why Nebraska?

Electric natural gas (e-NG), also called e-methane, is a synthetic fuel made through methanation. Renewable hydrogen is produced via water electrolysis. That hydrogen is then combined with CO2 from industrial sources to form methane.

At Live Oak, the CO2 feedstock comes from Nebraska's bioethanol plants. The resulting molecule is chemically identical to conventional natural gas. It can move through existing LNG infrastructure without any changes to end-user equipment.

Nebraska's role is practical, not arbitrary. The state has a dense concentration of corn ethanol refineries that release biogenic CO2 during fermentation. Nebraska's growing ethanol CCS activity shows the state already has a track record of capturing biogenic emissions at scale.

natural gas power plant with chimneys reflected in a calm water reservoir at an industrial energy facility

Live Oak will use existing natural gas and LNG infrastructure to transport e-NG produced in Nebraska to Japanese markets.

TES, the Belgium-based green energy company co-developing the project, is advancing e-NG production globally. Live Oak in Nebraska is its flagship US project. TotalEnergies, the Paris-based integrated energy company, has partnered with TES on e-NG since 2023.

What Does the Competitive FEED Process Mean?

The consortium selected KBR and Técnicas Reunidas through a competitive process. Each firm will develop a full FEED concept independently. After both concepts are complete, the consortium selects one for execution.

This parallel approach gives the consortium two independent technical solutions to compare before committing capital. It keeps design accountability high across both contractors throughout the engineering phase.

KBR is a US-based engineering firm with extensive experience in large-scale energy infrastructure. Técnicas Reunidas is a Spanish firm that has delivered more than 2,600 industrial projects globally, including work across energy and chemicals sectors.

INPEX and Osaka Gas — a Live Oak consortium partner and confirmed offtaker — operate one of the world’s largest e-methane demonstration plants in Nagaoka, Japan. The facility converts captured CO2 and hydrogen into pipeline-quality synthetic methane, the same Sabatier methanation pathway planned for Live Oak in Nebraska.

The FEED phase locks in cost estimates, process configurations, and schedule certainty before a Final Investment Decision. The FID is targeted for 2027. Live Oak remains in pre-FID engineering and is not yet committed to construction. >> RELATED: Five US Green Hydrogen Projects Begin 2025 Shift to Cleaner Energy

Who Is Buying the Output?

Osaka Gas and Toho Gas, two of Japan's largest city gas utilities, are the confirmed primary offtakers for Live Oak's production. This was established in the December 2, 2025 TotalEnergies announcement when the Japanese companies formally joined the consortium. Osaka Gas operates under the Daigas Group, which has committed to integrating 1 percent e-methane into its gas grid by 2030. That goal is part of its Carbon Neutral Vision and Energy Transition 2050 strategy. Toho Gas has set the same 1 percent grid injection target, covering its entire supply chain by 2030. The Live Oak supply structure mirrors how other US clean molecule projects have secured Japanese anchor buyers. CF Industries' Blue Point ammonia complex in Louisiana is also targeting Japanese export markets for its low-carbon output. The US-Japan clean gas corridor is taking shape as a commercial pattern.
Clare Harris TES CEO

"Moving Live Oak into FEED is a significant milestone towards delivering e-NG at scale. Together with our partners, we are advancing a project that can support Japan's decarbonisation goals and demonstrate the role of e-NG in connecting renewable energy to global markets."

Clare Harris, CEO, TES, August 28, 2026 consortium statement

ITOCHU Corporation holds the remaining Japanese stake and serves as coordinator for the Japanese partner group. ITOCHU is an active member of the e-NG Coalition, which promotes e-methane adoption as a commercial decarbonization pathway.

Live Oak's Milestone Timeline

Date Milestone Key Detail
2023 TotalEnergies-TES partnership formed Original joint development agreement for large-scale e-NG production
December 2, 2025 Japanese consortium formed Osaka Gas, Toho Gas, ITOCHU granted 33.3% combined stake. Osaka Gas and Toho Gas confirmed as primary offtakers
August 28, 2026 Competitive FEED launched KBR and Técnicas Reunidas selected, parallel studies underway
2027 (target) FEED completion and FID Final Investment Decision subject to FEED outcomes
2030 (target) Commercial operations 75,000 tonnes per year of e-NG for Japan export

How Does Live Oak Fit Into the Broader US Clean Gas Picture?

Live Oak draws on Nebraska's biogenic CO2 from bioethanol plants. The consortium's December 2025 announcement describes that regional CO2 supply as abundant. The bioethanol feedstock approach differs from projects that rely on direct air capture or fossil-derived CO2 streams.

TotalEnergies carries parallel clean gas commitments elsewhere in its portfolio. The Hackberry Carbon Sequestration project at Cameron LNG in Louisiana is designed to capture up to 2 million tonnes of CO2 annually from LNG operations. Live Oak produces synthetic gas rather than sequestering emissions from fossil gas production. The two sit in different parts of TotalEnergies' decarbonization strategy.

Nebraska's role as a biogenic CO2 hub is being validated by other operators. Ethanol producers in the region are already monetizing biogenic CO2 through carbon removal credits. The expansion of carbon credit eligibility to biogenic CO2 streams also strengthens the commercial case for projects that route this feedstock into new uses.

Osaka Gas Daigas Group carbon neutral vision statement

"The Daigas Group aims to integrate 1% e-methane into its gas grid by 2030, paving the way for broader adoption across society. To achieve this goal, the Group is actively advancing e-methane technologies, conducting demonstration projects, and building supply chains both in Japan and overseas."

Osaka Gas (Daigas Group), Carbon Neutral Vision statement, December 2, 2025

The 250-megawatt electrolysis target places Live Oak among the larger announced US electrolysis projects. The pipeline of US green hydrogen projects targeting 2030 operations spans a wide range of technologies and markets. Live Oak's use of bioethanol CO2 as a feedstock, combined with confirmed Japanese offtake agreements, gives it a specific commercial profile among those projects.

aerial view of gas pipelines running through a forested rural area showing large scale energy transport infrastructure

Live Oak plans to use existing US natural gas and LNG pipeline infrastructure to move e-NG from Nebraska to export terminals for shipment to Japan.

What Comes Next

The parallel FEED studies are now underway. The consortium will select one engineering concept, then target an FID in 2027. Construction would follow, with commercial operations aimed at 2030. At full output, the project is designed to supply 75,000 tonnes per year of e-NG to Japanese customers.

The US-Japan dimension of Live Oak carries direct policy relevance. Japan has actively promoted clean hydrogen and e-methane imports as part of its national energy transition strategy. The expanding US CO2 infrastructure and permitting environment are supporting a broader set of projects that depend on biogenic CO2 feedstocks. Nebraska's position at the center of US bioethanol production makes it a natural supply origin for this kind of e-NG project at scale.

Live Oak enters the FEED phase with confirmed offtakers, a five-company international consortium, and two competing engineering contractors. That combination of commercial structure and engineering rigor moves it from concept development into detailed pre-construction design.

Frequently Asked Questions

What is e-NG and how is it produced?

E-NG (electric natural gas), also called e-methane, is a synthetic gas made by combining renewable hydrogen with CO2 through methanation. The hydrogen is produced by electrolysis using renewable electricity. At Live Oak, the CO2 comes from Nebraska bioethanol plants. The resulting molecule is chemically identical to conventional natural gas and can use existing LNG infrastructure for transport and distribution without modifications.

What is a FEED process, and is Live Oak committed to construction?

Front-end engineering design (FEED) is the detailed technical and economic study phase that comes before a Final Investment Decision (FID). At Live Oak, KBR and Técnicas Reunidas are running parallel FEED studies. The consortium will select one concept, then decide on FID. Live Oak is in pre-FID engineering as of August 2026 and is not committed to construction. The FID is targeted for 2027.

Why are Japanese utilities buying Nebraska e-methane?

Osaka Gas and Toho Gas are both committed to injecting 1 percent carbon-neutral gas into Japan's gas grid by 2030. Importing e-NG from the US via existing LNG shipping routes is one of the most practical near-term supply options. The e-NG moves through Japan's existing gas distribution network without equipment changes at the end-user level.

For ongoing coverage of clean hydrogen, e-methane, and industrial decarbonization, subscribe to Decarbonfuse.com.

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