TES, Tokyo Gas sign pact on e-methane

Europe-based Tree Energy Solutions (TES) and Japanese utility Tokyo Gas have signed an agreement to explore and develop e-methane supply chains globally as part of efforts to foster the global energy transition, the companies said on November 7.

Based on this agreement, TES and Tokyo Gas will work together to raise awareness of e-methane globally, encourage the institutional design of an international CO2 emissions counting system for e-methane and other fuels that contribute to carbon neutrality, and establish an international supply chain for e-methane.

The companies believe that in order for Japan to achieve carbon neutrality by 2050, it is important to decarbonise gas-based energy to meet heat demand, which currently accounts for 60% of the country’s total demand, and e-methane is expected to be one of the promising options.

Because e-methane can utilise existing city gas infrastructure such as LNG receiving terminals, pipelines, and consumption equipment without modification, it is possible to achieve both a smooth transition to carbon neutrality and additional social cost containment, the companies said.

In Europe, several e-methane production plants are already in operation, and various new projects are being considered in Germany, France and elsewhere. e-methane is being focused on as a realistic transition option that can decarbonise while making effective use of existing LNG and natural gas infrastructure.