e-NG supply chain plans announced

TES, a producer of electric natural gas (e-NG) derived from green hydrogen, and Toho Gas Co. have signed a comprehensive agreement to explore the development of an e-NG supply chain to support Japan’s decarbonization goals.

Because e-NG can utilize existing city gas infrastructure and consumer appliances, it is expected to be a fuel that will help smooth the transition to carbon neutrality and reduce additional social costs in Japan, the companies said. Several e-NG production plants have already been approved in Europe and the United States, and they are attracting increasing attention as a promising option for achieving carbon neutrality.

As part of this collaboration, both companies will work together to raise awareness of e-NG and design systems such as CO₂ counting rules and financial support as well as the early implementation of e-NG in society, to achieve carbon neutrality.

“Current climate targets can only be met with equally ambitious new energy projects, and close collaboration is essential to develop the necessary regulatory framework to facilitate this,” said Marco Alverá, CEO of TES. “We are delighted to work alongside Toho Gas to deliver green, affordable energy across all industries.”

Takeo Haigou, managing executive Officer of Toho Gas said his company has set a goal to achieve carbon neutrality, including customer sites, by 2050.

“To achieve this goal, we believe that e-methane will play a key role, and aim to supply e-methane more than 1% of our city gas sales volume by 2030,” he said. “Toho Gas will accelerate these plans through the collaboration with TES.”