Tokyo Gas: E-Methane Powers Asia's Clean Energy Future

With the worldwide energy sector moving toward reducing carbon emissions, Takeuchi Atsunori, an executive officer at Tokyo Gas, Japan's ...

With the worldwide energy sector moving toward reducing carbon emissions, Takeuchi Atsunori, an executive officer at Tokyo Gas, Japan's leading gas provider, believes that e-methane and renewable natural gas (RNG) will play a key role in achieving a carbon-neutral future.

During this interview, he talks about Tokyo Gas's global efforts, the difficulties related to expenses and innovation, and the effect of American energy policy on the company's strategies.

What is synthetic methane, and why does it hold significance for the future of the natural gas sector?

Synthetic methane, also known as e-methane, is created by merging hydrogen—generated from sustainable resources such as solar or wind energy—with CO2 collected from industrial activities. This process yields a carbon-neutral gas that can be utilized within existing natural gas systems. It presents a route towards reducing carbon emissions without the need to replace current networks.

What sets e-methane apart from conventional natural gas, and which entities are working on its development?

Natural gas, including LNG, is considered a fossil fuel, whereas e-methane is completely sustainable. In Japan, the primary companies involved are Tokyo Gas, Osaka Gas, and Toho Gas. Smaller companies find it difficult to enter this market because of the high manufacturing expenses.

When did you start working on the e-methane concept?

We began in 2019. Prior to that, we carried out a minor feasibility analysis. From that point onward, we have sped up our development. Our objective is to provide 1% of the energy needs of the Greater Tokyo area with e-methane, although cost continues to be a challenge. Full decarbonization by 2050 is our target, contingent on technological advancements and governmental assistance.

In which locations is Tokyo Gas implementing e-methane initiatives?

We are looking into possibilities in the United States, Australia, and Malaysia, with the last one being a collaboration with Petronas. These nations have significant potential for renewable energy, which is crucial for producing hydrogen on a large scale. Nevertheless, e-methane is still five to ten times costlier than LNG.

What is the difference between RNG and e-methane?

RNG is generated from organic waste such as crop leftovers, food scraps, or agricultural byproducts, which release methane as they break down. We collect and refine this methane. It is already being utilized in the United States and Europe and is currently less expensive than e-methane.

Is RNG a temporary fix while e-methane technology advances?

Exactly. RNG is available today, whereas e-methane signifies the long-term future. They work together: RNG aids in initial decarbonization efforts, and e-methane will offer a large-scale, environmentally friendly supply by 2050.

What are the major challenges in producing e-methane currently?

The high price of hydrogen and carbon capture technology. Both continue to be costly, and the development of infrastructure requires significant time. Our efforts are directed towards enhancing efficiency and lowering expenses via research and development along with global cooperation.

What impact do the tariffs from the Trump administration and U.S. energy policies have on your initiatives in that region?

The United States plays a significant role as a partner — approximately 18% of Japan's liquefied natural gas imports are sourced from the US through long-term agreements. Tariff regulations have introduced some unpredictability, yet collaboration in natural gas remains robust. We keep investing in U.S. shale and LNG initiatives because of their reliability and growth prospects.

What part do Southeast Asian nations have in Tokyo Gas's shift towards clean energy?

Key markets such as Vietnam, Thailand, and Indonesia are crucial. We are collaborating with local authorities to develop LNG infrastructure and regulatory frameworks. Every nation is at a different point in this process, yet all recognize LNG as a transitional step towards renewable energy sources.

In what way does your company integrate solar and wind power with gas energy?

Renewable energy sources are crucial, yet they can be unreliable — there's no sunlight at night, and there's no wind on quiet days. Batteries offer some assistance, but they come with high expenses. Natural gas provides consistency and support. The most practical approach is a well-rounded combination of renewable energy, natural gas, and storage solutions.

What is your long-term perspective on the gas sector?

The natural gas sector is here to stay. Natural gas serves as a transitional energy source—more favorable compared to coal or petroleum. We will move away from traditional fossil fuels towards gas, and subsequently work towards complete carbon neutrality. By 2050, I am confident that gas—particularly e-methane and renewable natural gas—will play a key role in a sustainable energy landscape.

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