Japanese firms join Abu Dhabi e-methane project

26 January 2024

Japanese-headquartered Tokyo Gas and Osaka Gas have joined Abu Dhabi Future Energy Company (Masdar) and another Japanese firm, Inpex, in conducting a feasibility study to explore establishing an Abu Dhabi project to produce e-methane, a fuel source, using green hydrogen and carbon dioxide.

Masdar and Inpex signed an initial agreement to develop the study in July last year.

Through the project, Tokyo Gas and Osaka Gas plan to offtake e-methane in volumes equivalent to 1% of each company’s annual city gas demand.

It is understood both firms aim to introduce e-methane to cover 1% of their respective annual city gas demand by 2030 and further increase the introduction volume from the total of their worldwide projects by 2050.

Tokyo Gas and Osaka Gas will now join Masdar and Inpex in carrying out a feasibility study focused on the entire value chain for e-methane. 

This includes hydrogen production, procurement of carbon dioxide, and e-methane production and transportation.

Masdar said in July last year that the study will evaluate the commercial viability of operating a methanation business in Abu Dhabi, with a view to exporting the e-methane to Japan. It will also look at the project’s impact on emissions reductions.

E-methane has the potential to accelerate decarbonisation in hard-to-abate sectors such as industry, Masdar said in July.

In its latest statement, Masdar said e-methane does not impose special fuel conversion requirements upon consumers and can be accessed widely via the existing gas infrastructure in certain countries. This implies it has the potential to accelerate decarbonisation without significantly increasing costs.

 E-methane is …considered a pragmatic carbon-neutral or lower-carbon solution for thermal sectors where electrification is a challenge. Applications are also expected in the power generation and transportation sectors," it added

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Jennifer Aguinaldo
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