ANRE starts study on decarbonization of city gas and plans to organize rule on e-methane

ANRE starts study on decarbonization of city gas and plans to organize rule on e-methane

On February 8th, the Agency for Natural Resources and Energy (ANRE), METI started study on carbon neutralization of city gas. Based on the basic policy presented in the meeting of the GX Implementation Council, ANRE will discuss regulations and support measures necessary for social implementation of new technologies.

On the same day of February 8th, the Working Group (WG) for Examination of Gas Business Systems of the Advisory Committee for Natural Resources and Energy started discussion with experts.

Major city gas companies have been developing innovative methanation technologies and expanding their facilities in combination with major resource development firms. The goal is to produce 10 thousand Nm3 or more of e-methane from FY2030. An increasing number of business feasibility studies (FS) are being performed in foreign countries including the U.S. to produce e-methane in countries where electricity can be generated from renewable energy sources at lower cost and export it to Japan.

Although e-methane utilizes CO2 in its production process, it discharges CO2 when combusted. Since there is no international agreement on attribution of the discharge, Japanese city gas industry, which imports the e-methane, has been requiring establishment of a rule.

The WG will continue to discuss improvement of the LNG procurement conditions. Holding a meeting once in a month, the WG aims to complete an interim report in June.