Japan's Eneos, Osaka Gas Study Building Large E-Methane Facility in Osaka

(Reuters) — Japan's top refiner Eneos and city gas supplier Osaka Gas said on Tuesday they have begun a joint study of construction of an e-methane facility with the capacity to produce 60 million cubic meters of the fuel per year.

The synthetic methane, which could be used in everything from water heaters, cars and power plans, would be produced from imported green hydrogen to contribute to Japan's carbon neutrality goal, they said.

The proposed plan is to reach the production target by 2030 in the Osaka Bay area in what would be Japan's first large-scale e-methane project using green hydrogen, or hydrogen produced using renewable power to split water into hydrogen and oxygen.

The companies did not disclose how much they would have to invest in the plant if it goes ahead.

The proposed capacity for the facility is sufficient to supply gas to around 250,000 households and would help Osaka Gas to achieve a 2030 goal to replace about 1% of its city gas volume with e-methane to combat climate change.

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