The performance benefits – enhanced methane output at lower temperatures - as dictated by thermodynamics are clear. However, the key to processing efficiency lies within in the kinetics and reactor design. A catalyst with the fastest possible kinetics is desired. The faster the rate of reaction the smaller the reactor needs to be. Furthermore, exploitation of these thermodynamic considerations in the design of the methanation reactor can offer considerable size and weight benefits. The design goal for the methanation reactor is analogous to previous work with microchannel reactors utilized for the water-gas shift (WGS) reaction. The goal when operating the reactor is to develop an optimum thermal profile down the length of the reactor that will results in the highest reaction rate while maintaining the CO concentration far enough away from equilibrium to allow continued conversion to occur(4). This “temperature differential reactor” offers high conversion and enhanced kinetics at the front end of the reactor through higher temperature operation. As conversion occurs along the length of the reactor, from hot to cold, the favorable thermodynamics offered at lower temperatures are realized towards the back end of the reactor. Process intensification and careful enhanced thermal and diffusional control offered by microchannel reactors make them a very suitable technology for this particular application.