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Tokyo Gas begins synthetic methane trial using green hydrogen

By Yuka Obayashi
    YOKOHAMA, Japan June 24 (Reuters) - Tokyo Gas Co Ltd
 9531.T , Japan's top city gas supplier, said on Friday it has
begun a pilot programme of methanation, a technology to help
decarbonise city gas, and plans to use green hydrogen sourced
from renewable energy for the trial by next March.
    Methanation converts hydrogen and carbon dioxide (CO2) into
synthetic methane, an alternative for the main component in
natural gas. It is considered a way of using CO2 as a raw
material that could help the company achieve carbon neutrality
in 2050.
    Methane can be used in many ways, including as a fuel to
generate heat and electricity in power plants or at home, and as
a raw material for the chemical industry.
    For the first-phase trial aimed at producing 12.5 normal
cubic metres per hour (Nm3/h) synthetic methane, Tokyo Gas has
installed Hitachi Zosen's  7004.T  methanation device at its
research centre in Yokohama, near Tokyo, and begun producing the
fuel from hydrogen and CO2 procured from outside.
    It plans to install a water electrolysis device from
Britain's ITM Power  ITM.L  and use renewable-based hydrogen to
produce synthetic methane by March, Hisataka Yakabe, Tokyo Gas's
executive officer, said during a media tour of the facilities.
    It will also use CO2 emitted and captured from nearby
factories or its customers.
    Tokyo Gas is aiming to replace about 1% of city gas volume
with synthetic methane by 2030. It will scale up the trial in
late 2020s to produce 400 Nm3/h, followed by an overseas
demonstration in 2030 to make 20,000 Nm3/h. 
    "The biggest challenge is reducing cost," Yakabe said,
adding the methanation cost around 2030 would be much higher
than liquefied natural gas (LNG) prices, even with inexpensive
overseas renewable energy and lower hydrogen production costs.
    "Cost reduction must be achieved through multiple measures,"
he said.
    Tokyo Gas is also trying to build global supply chains of
synthetic methane, conducting feasibility studies in Malaysia
with Sumitomo Corp  8053.T  and Petronas  PETR.UL , and in North
America and Australia with Mitsubishi Corp  8058.T .

 (Reporting by Yuka Obayashi; Editing by Kim Coghill)
 ((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))

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