TES, Japan's Saibu Gas partner to promote e-methane

Europe-based Tree Energy Solutions (TES) and Japanese utility Saibu Gas have signed a memorandum of understanding (MoU) to advance the use of electric natural gas, or e-methane, as a key clean energy source, TES said on August 5. This partnership aligns with Japan’s objective to use e-methane for 90% of its city gas consumption by 2050.

The agreement aims to help Saibu Gas provide clean energy and achieve carbon neutrality in its city gas supply chain. The collaboration will explore opportunities such as a long-term e-methane offtake contract from TES’s production projects. These projects involve capturing CO2 and combining it with green hydrogen to produce e-methane, which can be used as a drop-in fuel at consumer facilities.

This partnership will enable TES to establish an overseas supply chain for e-methane in Asia and promote its introduction into the Japanese market. Both companies aim to create a sustainable value chain that supports Japan’s carbon neutrality goals by 2050 while ensuring a stable supply of clean energy.

Last year, TES also signed an agreement with Tokyo Gas to explore and develop e-methane supply chains globally, contributing to the global energy transition. In June of this year, TES collaborated with Japanese shipping company K Line on a joint study of e-methane, aiming to guide the maritime sector towards net-zero greenhouse gas emissions by 2050.

TES is developing a global portfolio of e-methane production and import projects. E-methane, created by combining green hydrogen with biogenic or recycled CO2, is considered a crucial element in decarbonising the maritime transport sector.