The invention comprises a recirculatory process for producing methane and oxygen in which iodine and an oxide in a lower valency stage are reacted with methanol, dimethylether or a mixture thereof at an elevated temperature to form the corresponding oxide having a higher valency stage and methyl iodide, the methyl iodide is reacted with water to form hydrogen iodide and reform the methanol and/or dimethylether, the hydrogen iodide is reacted with carbon dioxide to form methane and water and the oxide in the higher valency state is decomposed to release oxygen and reform the oxide having a lower valency stage, the methane and released oxygen are removed and the remaining components are recirculated.SPECIFICATION