The project proponents are aiming to produce e-methane for export to Japan.
Tokyo Gas, Toho Gas, Osaka Gas Australia (OGA) and Santos have entered into an agreement to explore e-methane production in Australia.
Under the agreement, the 4 organisations will conduct technical, regulatory and commercial studies to produce 130,000 tons (180 million Nm3/year) or more of e-methane annually. The studies will also explore exporting the e-methane to Japan.
OGA will conduct Pre-Front End Engineering and Design (Pre-FEED) work to produce e-methane in the Cooper Basin, located in central Australia. E-methane is a carbon-neutral synthetic methane. It is produced by capturing carbon dioxide and combining it with green hydrogen.
The prospective project will be located at Moomba, an area where Santos has been developing and operating natural gas fields for many years. The area offers access to:
Australia and Japan have committed billion-dollar investments in LNG over the decades. Using existing LNG and natural gas infrastructure assets is key to cost-effective energy supply. E-methane has the same properties as natural gas and can use existing LNG facilities. E-methane is one of 14 priorities in the Japanese Government’s Green Growth Strategy.
Australia is well placed to become a major global producer of green hydrogen. We have over 100 announced projects worth up to A$300 billion in potential investment. Our major trading partners have expressed significant interest in importing renewable hydrogen and its derivatives.
International companies are driving major green hydrogen projects in Australia, including:
The Australian Government has identified green hydrogen as a priority industry. Investors can access several incentives and grants to support the development of their green hydrogen projects.
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