Presentation for ICEF
Confidential

Initiative of Tokyo Gas toward Carbon Neutrality
Implementation of E-methane2022/10/5

Hisataka YAKABETokyo Gas Co,. Ltd.
Copyright© TOKYO GAS Co., Ltd. All Rights Reserved.

Tokyo Gas's Steps toward Achieving Carbon Neutrality by 2050
 Tokyo Gas will contribute to the carbon neutrality by 2050 through the following three perspectives and measures:(1) GX（De-carbonization）, (2) Resilience of energy supply, and (3) Effective utilization of existing infrastructure.
Digital technologies are actively and effectively used in all measures.
Perspectives&Means From the perspective of minimizing additional costs, e-methane (synthetic methane) is one of the most effective options.
① GX（De-carbonization）③ Utilization of existing infrastructure+Strength toward disaster

Minimizing additional social costs Power sector：Expansion of RE

 Diversification of energy sources Heat utilization sector ：Advanced Energy
Usage, CCU・CCS, and employment of emethane and hydrogen Integration of supply-side and demand-side Maximize the effective use of existing
infrastructure with e-methane

Employment of all measures

Procurement

LNG value chainandexisting infrastructure② Resilience of energy+Transportation

Production of city gas

Volume of LNG procurement

12.6 MTPA
for city gas
6.9 MTPA

for other uses
1.9 MTPA

for wholesale,power generation
3.8 MTPA

10 ships

Energy liberty
Copyright© TOKYO GAS Co., Ltd. All Rights Reserved.

City gas

4 terminals & pipelines over 60,000 km

sales to 8.8 M andsupply to 11 M customers

2.8 GW
Moka PowerStation
KawasakiNatural Gas
Power Plant
Ohgishima
PowerSales

LNG terminal and pipeline network

Natural gas-fired power plant

Owned and managedvessels

Distribution

Digital technology
renewable energy source
All domestic and global power

Electricity

Number of retailelectricity sales
3 M customers

1.4 GW
Aktina power (USA)As of 2021 March（Only number of electricity customers, as of 2022 March)2

CO2 Recycling through the Use of E-Methane E-methane is produced by reacting hydrogen with CO2 recovered from factories or thermal power plants.
 The utilization of e-methane does not increase CO2 in air overall.
 The advantage of e-methane is that existing infrastructure can be used without any further additional cost.
 E-methane is also expected to decarnbonize heat demand sectors that are difficult to electrify.

Domestic model*Presented by Japan gas association

Renewable energyUtilization
Green H2Synthesis
4H2+CO2 →CH4+2H2O

CH4Distribution

CaptureEmission

Power plantetc.

Global supply chain of e-methnae

CO2 recycle

LNG Liquefaction Plant

LNG
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3

Roadmap for Social Implementation of E-methane (1% Adoption by 2030)
 To implement e-methane, we will conduct three major steps.
Step I :Small scale (50 km3/y) , Step II: Middle scale (1.6 million m3/y) , Step III: Overseas project (80 million m3/y)

Establishment of technology
222324scale-up
25262728

social implementation
2930

313233

STEP Ⅰ
Domestic small-scaledemonstration

Innovative technology demonstration

Domestic

Plant scale 12.5 Nm3／h

STEP ⅡFS ~ FEED ~ FID

Regional Cooperation Model
CO2

Renewable energy

Domestic middle-scale demonstration
Plant scale ～500 Nm3／h

CO2

H2
H2

Electrolyzer

1% ⇒ Implementation

blending
Methanation plant

STEP Ⅲ
Large-scale overseas
supply chain establishment
Plant scale ～20,000 Nm3／h(Equivalent to 1-2 GW power)

Copyright© TOKYO GAS Co., Ltd. All Rights Reserved.

Overseas

FS ~ FEED ~ FID

4

Social Implementation Initiatives of E-Methane Small-scale demonstration : We have started a small-scale demonstration experiments of technology and collaboration
for regional carbon-neutrality, and will acquire the skill and know-how for scaling up to mid-scale.
 Mid-scale demonstration : We will promote social implementation through conduit injection of the produced e-methane,on-site utilization, and regional cooperation toward large-scale production overseas.
Small

Demonstration at Tokyo Gas’s facilities (12.5 Nm3/h)
and regional collaboration

 Period： Since March 2022 small-scale demonstration in Yokohama has started.
・Regional collaboration with Yokohama City facilities, etc. is undergoing Feature ：・Electricity: Optimization of renewable energy and grid power
・CO2: Receive and utilize CO2 from neighboring facilities.
・Others:メタネーション試験設備レイアウト図
Linkage of recycled water, biogas (digestiongas), CO2, etc. with
メタネーション装置
surrounding facilities of Yokohama city.
 R&D: Existing technologies (Sabatier) will be tested and innovative technologies
will be also developed.
（Demonstration field）

MiddleDomestic regional cooperation and on-site use (100 Nm3/h scale) Period ： Middle-scale demonstration + regional collaboration and on-site usedemonstration planned from mid-20s.
 Feature ： Production and utilization, and pipeline injection are planned for
optimal utilization of resources in industrial areas, large consumers
and specific regions in Japan.
 Examples：Employment of e-methane in cement, chemical and steel
plants.
Regional Cooperation Model

CO2Renewable energy■Methanation plant■Electrolyzer(municipalities, industrial parks, etc.)

CO2H2■Solar panel
70 m

H2

■Hydrogen storagetank

Electrolyzer

blending
Methanation plant■CO2 storage tank■Gas appliances

CO2■Controle unit
30 mCopyright© TOKYO GAS Co., Ltd. All Rights Reserved.

■Exhibition room

（Methanation plant）

CO2

On-site utilization model
self-use(Cement. chemical ad steel industry)5

Cost Image of E-methane and Challenges and Actions for Social Implementation
 The cost of e-methane in 2030 is estimated still much higher than the target price (equivalent to LNG price), evenassuming lower the cost of electrolyzer and the securing of inexpensive renewable power from overseas.
 To expand the introduction of e-methane, it is necessary to reduce costs through innovation and to bridge the price gap
between e-methane and LNG through multiple measures.
IssuesMeasureCost Image of e-methaneTechnologies that contribute toimproveenergyconversion
efficiency and lower equipment
costs.

Transportation

Synthesis
CO2Electrolyzer

Technologies to produce hydrogenfrom green electricity at higher
efficiency and lower cost.

＞
Greenpower
Target price（LNG price）

１１2
１2Procurement
ofinexpensive
renewable electricity for greenhydrogen production.

2

Public support to bridge the gap
between e-methane and current
LNG price.

3

 Low-cost hydrogen production
technology
 Innovative methanation technology
 Other technologies related to e-methane
value chain

２

Cost in 2030

Future target

3Partnership Collaboration across and beyond the gasindustry
 Collaboration with research institutions andstart-ups
 Customers, trading companies, engine
manufacturers, different industries, local
governments, etc.

３
Return of the environmental valueof the produced e-methane to user.

Innovative R&D

Institutional design and support

 Institutional Design for Establishing theEnvironmental Value of e-methane Public support for social implementationCopyright© TOKYO GAS Co., Ltd. All Rights Reserved.

6

Global De-carbonization Activities (e.g. E-methane / Hydrogen / RNG)
 We are currently working with trading companies and global energy companies on feasibility studies for supply chains ofenergy carriers in North America, Malaysia, Australia and other regions.
 Collaboratively working with Shell on hydrogen, biogas, e-methane, ammonia, and CCS.
Feasibility study in Malaysia【Players】【Items】【Status】

Feasibility study in United States

Petronas, Sumitomo Corporation,and Tokyo Gas
FS in Malaysia
・ Initial cost estimation with anengineering company
・ Candidate site：Bintulu

Middle East

【Players】【Items】【Status】
Introduction of e-methane toJapan and Asia

U.S.A.

Southeast Asia

Mitsubishi Corporation, Tokyo Gas,
Osaka Gas, Toho Gas,
FS in United States・ Initial cost estimates have been
completed・ Start of detailed examination using
an engineering company

liquefactionhydropowerliquefaction

Collaborative work with Shell【Players】【Topics】【Status】

Shell and Tokyo Gas
Hydrogen, RNG, e-methane,ammonia, and CCS.
Under discussion

Copyright© TOKYO GAS Co., Ltd. All Rights Reserved.

Australia
Feasibility study in Australia and Middle East
【Players】【Items】【Status】

Mitsubishi Corporation and Tokyo Gas
FS in Australia and Middle East
Initial cost estimation will begin.
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Summary In order to carry through responsible transitions toward a carbon neutral society, Tokyo Gas is going topromote the decarbonization of both gas and electricity.
 While selecting appropriate carriers considering the time frame and technology maturity, we will
specially focus on the introduction of e-methane (synthetic methane).
 In the future, we will contribute to local and global carbon neutralization as a decarbonizing energy
player in the thermal demand sector, and create new decarbonization model originating from Japan.

Copyright© TOKYO GAS Co., Ltd. All Rights Reserved.

8

Copyright© TOKYO GAS Co., Ltd. All Rights Reserved.

Heat demand and the importance of its decarbonization
 Heat demand accounts for 60% of Japan's energy consumption in the commercial and industrial sectors. It isdifficult to meet the high-temperature heat demand of the industrial sector by only electrification.
 To achieve carbon neutrality by 2050, decarbonization of the heat demand sector is important, and decarbonizationof gas, which supplies heat energy to the demand side, will play a major role.

Energy Consumption by Use in theCommercial and Industrial Sectors
FromProcess

28.5%

Energy consumption
in the consumer andindustrial sectors

Heatdemand(9,700 PJ)

Heat volume (PJ)

Machinery Manufacturing

9.5%
Powerdemand

Heat demand in the industrial sector by temperature range

Steel industry
Cement industry
Polymer industry
Chemical industry
Textile industry

Food industry

62%

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*presented by METI at Basic Policy Subsection Meeting

Temperature (℃)

10