Osaka Gas to build U.S. e-methane procurement network

OSAKA — Osaka Gas plans to spend 100 billion yen ($667 million) to construct a procurement network in the U.S. for e-methane, an eco-friendly alternative to natural gas, hoping it will supply more than 60% of Japan’s 2030 targeted demand for the fuel, Nikkei has learned.

E-methane, also known as electro-methane or synthetic methane, is produced by synthesizing hydrogen with carbon dioxide. If CO2 captured from factories and other sources is used, emissions when burning the gas can be offset, effectively bringing emissions to zero. The utility has decided to produce e-methane in the U.S. because hydrogen can be sourced more cheaply there.