Thu. Dec 7th, 2023
    Australia’s Santos and Tokyo Gas Partner to Explore Carbon-Neutral E-Methane Production

    Australia’s gas producer Santos has joined forces with Tokyo Gas, Japan’s largest gas utility company, to investigate the potential of producing carbon-neutral e-methane in Australia. The partnership aims to leverage green hydrogen and CO2 obtained from carbon capture technology to create e-methane. This fuel is chemically identical to natural gas and can utilize existing gas infrastructure and distribution networks. Santos Energy Solutions executive vice president, Alan Stuart-Grant, commended the advantages of e-methane, stating that it could function as a direct substitute for natural gas, eliminating the need for new infrastructure and expensive industrial processes that are not yet feasible or available.

    Furthermore, the collaboration between Santos and Tokyo Gas opens up an exciting business opportunity to transform the Cooper basin assets into a large-scale carbon capture and storage hub. The study will focus on technical analysis of renewable power, carbon dioxide sources, and feedstock availability, as well as evaluating the methanation process, costs, schedules, risks, and commercialization options. The Cooper basin, known for its renewable resource potential, will play a crucial role in this venture, with Santos already conducting trials on carbon capture technology.

    The significance of e-methane lies in its ability to serve as a low-cost decarbonization solution for sectors that face challenges in adopting alternative technologies. Industries reliant on power generation, high-temperature heating, and chemical manufacturing can benefit from this carbon-neutral substitute for natural gas. This fuel offers an opportunity to reduce emissions in hard-to-abate sectors where economically viable and proven alternatives are limited.


    Q: What is e-methane?
    A: E-methane is a carbon-neutral fuel made by combining green hydrogen with CO2 derived from carbon capture technologies.

    Q: What are the advantages of e-methane?
    A: E-methane shares the same chemical properties as natural gas and can utilize existing gas infrastructure, making it a cost-effective carbon-neutral substitute.

    Q: What sectors can benefit from e-methane?
    A: E-methane can be used in power generation, high-temperature heating, and chemicals manufacturing, providing a relatively low-cost decarbonization solution for hard-to-abate sectors.

    Q: What is the focus of the Santos and Tokyo Gas partnership?
    A: The partnership aims to evaluate the potential for producing e-methane in Australia’s Cooper basin, leveraging existing infrastructure and renewable resources.