The continuous methanation of CO2 has been accomplished over hydrogen-reduced Ni(ll)-bearing ferrite (NixFe3-xO4-delta; X=0.39, delta > 0) in a mixed gas flow of CO2 and H-2 at 250-375 degrees C. The yield and the selectivity for the methanation were larger than 50% and 95%, respectively, at the initial stage of the process. They decreased to 31% and 89%, respectively, after 6 h methanation. The innovative results can be ascribed to the use of the new material; hydrogen-reduced Ni(ll)-bearing ferrite. Its formation was evinced by chemical analyses and the increase in the lattice constant; the lattice constant of the Ni(ll)-bearing ferrite (a(0) 0.8375 nm) was enlarged to 0.8379 nm by hydrogen reduction. The enlarged lattice constant was not changed during the methanation. These findings suggest that the methanation occurs at the oxygen-deficient site of the hydrogen-reduced Ni(ll)-bearing ferrite, as well as the formation of water by combination of the incorporated oxygens with hydrogen. The methanation consists of three steps of the elementary reaction. First, the oxygen-deficient sites are formed by hydrogen reduction; second, CO2 is reduced to elementary carbon and two oxygen ions which are incorporated into the oxygen-deficient sites; and third, the carbon deposited on the surface of the reduced ferrite is selectively hydrogenated to CH4.