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AsianOil ENERGY TRANSITION AsianOil

E-methane tie-up to help secure

Australia-Japan energy ties

AUSTRALIA AUSTRALIAN oil and gas firm Santos has eventual export to Japan to the tune of an esti-
agreed to produce carbon-free e-methane gas mated 60,000 tonnes each year (tpy) by 2030.
E-methane is consider using green hydrogen in conjunction with a “Decarbonising natural gas supports a long-
zero-carbon. team from Osaka Gas Australia (OGA). term supply of reliable and affordable energy, as
The deal will see the Australian firm put well as the production of cleaner fuels such as
in place all aspects of engineering and design e-methane. The advantage of e-methane is that
required to generate a full size precursor of it overcomes the challenges associated with the
the commercial plant as part of the process of transport and export of hydrogen by allowing
attracting backers. the use of existing transport, liquefaction and
Speaking after the tie-up was announced, end-user infrastructure providing a scope 1 and
Kevin Gallagher, the managing director and 2 as well as a scope 3 carbon neutral outcome”
CEO at Santos, said: “I believe it is increasingly Gallagher added.
clear gas will play a leading role in the transition A statement released by Osaka Gas said of
to a decarbonised future, and Santos is excited the deal “This project is part of Osaka Gas’s ini-
to be progressing a new business opportunity tiatives to achieve net zero by 2050, focusing on
that seeks to leverage our assets and capabilities e-methane, which can be transported and used
to deliver a cleaner energy that will help create a in the existing gas infrastructure and appliances
better world for everyone.” without replacement or modification, saving
When functional the end goal will be the social costs. Osaka Gas is conducting e-meth-
commercial and large-scale production of ane studies in multiple locations, including Aus-
e-methane using green hydrogen in a process tralia, North America, South America, Middle
that employs only clean energy. East and Southeast Asia, and developing tech-
Any resulting waste CO2 will, reports say, be nologies for e-methane to meet the heat demand
captured on site by using ever improving tech- in a carbon neutral way, potentially utilise it as
nology to do so. a fuel for power generation and mobility, and
It is understood Santos is also looking to turn contribute to Japan’s smooth transition to net
the e-methane produced into liquid form for zero.” ™

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