Page 5 - FSU OGM Week 11 2021

FSUOGM COMMENTARY FSUOGM

Carbon-neutral LNG picks

up momentum

Several recent developments illustrate the adoption of carbon-neutral LNG

picking up pace, though it is still in its early days

EUROPE CARBON-NEUTRAL LNG is increasingly joined 14 other Japanese companies in forming
gaining momentum as more industry players the Carbon Neutral LNG Buyers Alliance in an
WHAT: commit to the concept, or put themselves on a effort to promote the more widespread use of the
More and more path towards it. Carbon neutrality is currently greener version of the fuel. For Tokyo Gas, the
companies are getting achieved for LNG cargoes through the issuing move is another step forward on carbon-neutral
behind carbon-neutral of carbon credits to offset emissions generated. LNG, which it first imported in 2019, subse-
LNG. Thus far, credits for the nascent carbon-neutral quently becoming the first company in Japan to
LNG industry have generally been bought from supply it to customers as carbon-neutral city gas.
WHY: projects that avoid or reduce emissions, such as It now wishes to expand its network of buyers.
The concept is still nature-based schemes. These credits are gener- “We are seeking an innovation in hydrogen,
in its early days, but ally used to offset emissions associated with the methanation and carbon capture utilisation
aligns with national entire lifecycle of a cargo, from production to technology, but it may take time,” Tokyo Gas’
and company-level end use by the LNG buyer. executive vice-president, Kunio Nohata, said this
decarbonisation targets. New liquefaction plants have been proposed week. “Therefore we want to spread the use of
that would minimise their emissions from the carbon-neutral LNG, which is the most feasible
WHAT NEXT: start, for example via carbon capture and storage measure right now to slash CO2 [carbon diox-
The concept is still (CCS). While these projects have yet to advance ide] emissions,” he added.
in its early days, but to the final investment decision (FID) stage, The alliance comprises Tokyo Gas, Asahi
aligns with national their emergence suggests that it could become Group Holdings, Isuzu Motors, Olympus, Sakai
and company-level increasingly easier to source carbon-neutral Chemical Industry, Duskin, Tamagawa Acad-
decarbonisation targets. LNG via various avenues in the future. emy & University, Toshiba, Toho Titanium, New
Otani, Marunouchi Heat Supply, Sumitomo
Buyers’ club Mitsui Trust Bank, Mitsubishi Estate, Yakult
This week, Tokyo Gas announced that it had Honsha and Lumine. It opens up a number of

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