The possibility of methane formation in an oxidative environment has been intensely debated, especially since the discovery of methane generation by living plants. However, recent studies with animal tissue suggested that under specific conditions aerobic methane formation is also possible. Here, we investigated the generation of methane in an abiotic model system using bioavailable substances. We show formation of methane in a highly oxidative media, using ascorbic acid, ferrihydrite and hydrogen peroxide as reagents. Methane production was shown to be related to reagent ratio, reaction volume and pH. A 2:1 ratio of hydrogen peroxide to ascorbic acid, catalytic amounts of ferrihydrite and acidic conditions (pH 3) enhanced formation of methane. We further show that gaseous oxygen has a strong influence with higher levels found to inhibit methane formation. This study is a first step towards providing an insight for the reaction mechanism of methane formation that would be applicable to aerobic environments.