Japanese gas distributor Toho Gas and Australian independent Santos have partnered to produce synthetic methane, or e-methane, in Australia to export to Japan from 2030.
Toho Gas announced on 13 December that it has signed an agreement with Santos Ventures, a subsidiary of Santos, to start a feasibility study for e-methane production in the Cooper basin of central-eastern Australia. The companies aim to export 30,000 t/yr of e-methane from the site from 2030.
The synthetic methane will be produced from CO2 and hydrogen made from Australia's abundant renewable energy resources, Toho Gas said.
Santos has a similar partnership with Tokyo Gas that aims to export 60,000 t/yr of e-methane from the Cooper basin site from 2030. It tied up with Osaka Gas in March to produce e-methane in Australia and export 60,000 t/yr to Japan from 2030.
The city gas industry wants e-methane to account for 1pc of city gas components by 2030, rising to 90pc by 2050. The gas sector regards e-methane as a potential replacement fuel for LNG, the current main feedstock for Japanese city gas, as gas companies can use existing LNG infrastructure to buy e-methane while supporting Japan's decarbonisation efforts.
