The Japan Gas Association
1-15-12 Toranomon Minato-ku, Tokyo105-0001, JAPAN20 July, 2021

Summary of Remarks by JGA Chair HONJO Takehiro

The Tokyo Olympics will finally start on July 23rd. As the gas industry, we would
like to do our utmost to ensure stable gas supply and security operations.

1. Positioning of gas in "Green Growth Strategy" of the Japanese
government
In the "Growth Strategy" which was decided by the Cabinet on June 18 andthe "Green Growth Strategy through Achieving Carbon Neutrality in 2050" which
was updated by the Ministry of Economy, Trade and Industry (METI) in
collaboration with related ministries and agencies, the industry that supplies
carbon-neutral gas such as methanation (technology for synthesizing methanefrom Hydrogen and CO2) and direct use of hydrogen is positioned one of the"14 priority fields to be addressed" as "next-generation thermal energy industry".
The following are shown as future efforts in the "next-generation thermalenergy industry".
Realization of decarbonization of gas, such as methanation from thesupply side.

At the same time, the expansion of distributed energy systems such ascogeneration and the transforming to a general energy service
company providing optimal energy systems by utilizing digitaltechnology.
1Regarding carbon neutralization on the demand side, it was described thatthe realization of decarbonization such as fuel conversion to natural gas during
the transition period and promotion of the expansion of credit-offset LNG, further
improvement of resilience by continuous strengthening of gas infrastructure,and contributions to local areas through securing a stable supply of energy.
In addition, in "Hydrogen / Fuel Ammonia Industry" part, which is stated as
one of the 14 fields, promotion of social implementation of stationary fuel cells
was described. In "Carbon Recycling Materials Industry" part, the technologicaldevelopment of metanation was described.

In "Ship Industry" part, promotionof the spread of LNG fueled ships was described.
In this way, many items related to gas are described in the government's"Green Growth Strategy".

The gas industry will work as one to meet theexpectation.

2. "The Methanation promotion public-private Council" hosted by thegovernment
The Metanation Promotion Public-Private Council shares technical,economic, and institutional issues centered on methanation and the timeline forsolutions with the public and private sectors and promotes integrated efforts.
The first meeting was held on June 28th.
In the Council, the public and private sectors will work together to steadily
implement the initiatives described in the "Green Growth Strategy" (nextgeneration thermal energy industry), aiming to achieve carbon neutralization ofgas.
Based on the action plan of the Japan Gas Association, the goal is to inject2

1% of synthetic methane into the existing infrastructure by 2030 and to achieve
5% carbon neutralization of gas by combining means such as direct use ofhydrogen.
Furthermore, it is mentioned that 90% of synthetic methane will be injected
into the existing infrastructure by 2050, aiming to achieve carbon neutralizationof gas in combination with direct use of hydrogen.
The themes to be examined by the Council are as follows.
-

as technical issues, larger size, and higher efficiency of methanationequipment.

-

as an economic issue, examining a suitable place for synthetic
methane production.

-as an institutional issue, Concept of CO2 counting.

The feature of the Council is that various industries such as tradingcompanies, engineering companies, industrial users and shipping companies
participate widely in addition to experts, related organizations, and city gas
companies to realize methanation.
At the first meeting, Mr. MATSUYAMA Yasuhiro, the Director-General of theElectricity and Gas Industry Department of the Agency for Natural Resources
and Energy of METI said, "Heat accounts for about 60% of energy consumption
in the industrial and consumer sectors, and it's a big key how to decarbonize
theheatsector.

Introducing

methanation

technology

usingexisting

infrastructure is a very important key to realizing the reforms at the moment
while envisioning the future."
In addition, the committee members expressed their expectations formethanation, such as "It is important to maximize the benefits of methanation3

that can utilize existing infrastructure and bring them closer to carbon neutrality
while reducing investment risk." At the same time, many valuable opinions wereexpressed, such as issues for its realization.
I feel that the public and private sectors have finally begun to move toward
the realization of methanation, together with various people of various
industries.
I would like to express my sincerest appreciation for the Council was set up.
At the same time, the gas industry will work as one to organize issues and divide
roles toward the realization of carbon neutralization of gas such as methanation.
Furthermore, we would like to make a strong determination to consider
alliances in the industry for building a supply chain and to obtain policy support
for technological development toward the realization of carbon neutrality suchas methanation.

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