Osaka Gas Plans $667 Million Investment for E-Methane Production in the U.S.
Key Ideas
  • Osaka Gas is investing $667 million to build an e-methane production site in the U.S. to supply over 60% of Japan's 2030 fuel demand.
  • E-methane, a synthetic methane produced by synthesizing hydrogen with carbon dioxide, is considered an eco-friendly alternative to natural gas.
  • The production of e-methane in the U.S. aims to utilize cheaper hydrogen sources and offset emissions effectively, bringing carbon emissions to zero.
  • Osaka Gas plans to ship the e-methane to Japan through an LNG terminal in Texas, where it has a stake, enabling an international supply chain for the fuel.
Osaka Gas, a utility company based in Japan, has unveiled plans to invest 100 billion yen (approximately $667 million) in constructing a procurement network in the U.S. for e-methane production. E-methane, also known as synthetic methane or electro-methane, is created by combining hydrogen with carbon dioxide, offering an environmentally friendly substitute for natural gas. The initiative aims to meet more than 60% of Japan's targeted fuel demand by 2030. By utilizing captured CO2 from various sources, the emissions generated when burning e-methane can be neutralized, effectively reducing emissions to zero. The decision to establish the production site in the U.S. is driven by the availability of cost-effective hydrogen sources in the region. Furthermore, Osaka Gas intends to transport the e-methane to Japan utilizing an LNG terminal in Texas, where the company holds a stake. This move sets the stage for an international supply chain that will facilitate the delivery of e-methane from the U.S. to Japan, supporting the country's energy transition efforts.
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