Osaka Gas to purchase US biomethane to accelerate energy transition

Osaka Gas has signed an agreement with the U.S. company Archaea Energy to import biomethane produced from landfills, with the first shipment expected in January at an LNG terminal in the Kansai region. This deal marks the company’s debut in imported biomethane, as the sector seeks to acquire resources with a lower carbon footprint. Synthetic methane produced from hydrogen and carbon dioxide remains the leading candidate for next-generation municipal gas, but high costs and technological limitations are holding back its widespread use.

Tokyo Gas also began importing biomethane from the United States last year. In June, the Japan Gas Association revised its 2050 goal to replace 50 to 90 percent of municipal gas with synthetic methane or biogas, up from the previous target of 90 percent.