Japan's Osaka Gas to build 623MW CCGT unit

Market: Natural gas
07/03/25

Japanese gas retailer Osaka Gas has agreed to develop a 622.6MW combined-cycle gas-turbine (CCGT) unit in Ehime, Hyogo prefecture, which it plans to bring on line by 2031.

Osaka Gas reached a deal with state-owned Development Bank of Japan (DBJ) and financial firms SMFL Mirai Partners and Mizuho Leasing to build the unit. The four companies set up a joint venture called Himeji Natural Gas Power Generation No.3 in December last year and aim to start commercial operations at the unit in the April 2030 to March 2031 fiscal year.

The CCGT unit will be designed to use LNG as a generation fuel, but will also consume e-methane in the future, Osaka Gas said.

The new gas-fired power unit was awarded to Osaka Gas under Japan's first auction for long-term zero-emissions power capacity last year. The unit is one of 10 planned gas-fired units with a combined capacity of almost 6GW that were awarded in the auction.

The auctions plan to target mostly clean power sources, with 4GW of nuclear, battery storage, ammonia, hydrogen, biomass and hydroelectric capacity awarded in the first round. But they also cover plants burning regasified LNG as an immediate measure to secure stable power supplies, so long as they become a net zero power source by 2050.

Osaka Gas has participated in several e-methane projects both in Japan and overseas. Osaka Gas has set a target to switch 1pc of its city gas to carbon-free e-methane in the 2030-31 fiscal year.

By Reina Maeda

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