Energy giant Shell will work with two of Japan’s biggest gas companies Tokyo Gas and Osaka Gas to explore solutions that will help reduce carbon dioxide (CO2) emissions across the company’s production value chains.

Signed yesterday, 6th June, the deal will see the three companies investigate the use and adoption of hydrogen, carbon capture, utilisation, and storage (CCUS), biomethane, and renewables-based synthetic gas to hit net zero targets. 

Commenting on the deal, Steve Hill, EVP, Shell Energy, said, “We have been delivering LNG to Japan for over 50 years and are proud to be part of Japan’s energy journey over the years”. 

Having previously supplied Osaka Gas with its first carbon-neutral LNG shipment, Shell released its LNG Outlook 2022, which revealed that the global trade in LNG increased to 380 million tonnes during 2021 as many countries rebounded from the economic impact of the Covid-19 pandemic. 

According to the study, China is currently the world’s largest LNG importer with imports reaching 79 million tonnes in 2021, equal to 17.5% of the entire import market. 

Following Russia’s invasion of Ukraine, countries across Europe have sought to diversify energy supply, an endeavour that could see further adoption of cleaner fuels such as hydrogen and biomethane. 

With clean fuels playing a major role for Osaka Gas in achieving its decarbonisation goals, Keiji Takemori, Senior Executive Office, Head of Energy Resources and International Business Unit, Osaka Gas, said, “We are pursuing our net zero target for 2050 under the Daigas Group Carbon Neutral Vision we announced in January 2021.” 

“We are very grateful for this opportunity to collaborate with our long-standing partner Shell under this MoU (Memorandum of Understanding) in developing solutions for carbon neutrality, such as synthetic gas produced by methanation technologies, and other decarbonisation solutions including hydrogen, ammonia, and CCUS.” 

As part of its own journey to become a net zero emissions business by 2050, Shell has been working with companies to achieve low emissions through schemes such as delivering LNG cargoes with carbon offsets.