Key facts
- Inpex and Tokyo Gas will supply city gas made with carbon-neutral methane.
- E-methane is produced using captured CO2 and hydrogen.
- Biomethane is generated from landfill-originated biogas.
- Both e-methane and biomethane can utilize existing natural gas infrastructure.
- The Japanese government supports carbon-neutral methane implementation.
Japanese gas suppliers Inpex and Tokyo Gas are preparing to deliver city gas produced with carbon-neutral methane to domestic consumers, a move aimed at promoting decarbonization within the gas sector. The initiative was announced on June 25.
Inpex, in collaboration with Osaka Gas, has successfully demonstrated the manufacturing of synthetic methane, or e-methane. This process utilizes captured carbon dioxide from Inpex's Koshijihara plant in Nagaoka city and hydrogen sourced from Iwatani. This e-methane will be used to supply low-carbon city gas.
Inpex has entered into an agreement with the city of Nagaoka and Hokuriku Gas to provide clean gas certificates. These certificates will guarantee the decarbonization impact, enabling Hokuriku Gas to deliver the low-carbon city gas, produced from Inpex and Osaka Gas' e-methane, to public facilities within Nagaoka city.
While Inpex focuses on domestic e-methane production, Tokyo Gas is planning to deliver city gas generated from imported biomethane. Tokyo Gas intends to supply this low-carbon city gas to Fuji Film's Ashigara Work facility in Kanagawa prefecture. The company aims to evaluate the handling and cost associated with this low-carbon gas.
Tokyo Gas is considering the use of biomethane previously imported from the United States via the Japanese trading house Mitsui. This biomethane, derived from landfill-originated biogas, was received in March 2024. Although specific supply terms remain undisclosed, Tokyo Gas anticipates commencing shipments within the fiscal year spanning April 2026 to March 2027.
The Japanese government and the gas industry are supportive of implementing carbon-neutral methane, recognizing that both e-methane and biomethane can be integrated into existing natural gas infrastructure, including city gas pipelines. The Ministry of Economy, Trade and Industry (METI) also views e-methane as a significant factor in generating demand for hydrogen.