A group of 15 Japanese companies has created a buying alliance to support the procurement of carbon neutral liquified natural gas (LNG).
The Carbon Neutral LNG Buyers Alliance aims to combine the spending power of members to promote production of greener LNG.
Carbon neutral LNG uses methods during and outside of production to offset and reduce emissions generated.
LNG producers get classified as “carbon neutral” by removing carbon dioxide at various stages along the LNG value chain by using carbon capture and storage processes, renewable power, and offsetting emissions by supporting renewable energy and reforestation projects.
The alliance told Reuters in a news conference that it aimed “to enhance the use of carbon neutral liquefied natural gas (LNG) to help tackle climate change”.
Kunio Nohata, executive vice president at energy firm Tokyo Gas, said it wanted to expand the buyers’ network, and it “hopes more LNG producers will offer carbon neutral LNG so that it can widen its procurement sources”, according to Reuters.
“We want to spread the use of carbon neutral LNG which is the most feasible measure right now to slash CO2 emissions,” he said.
It is investing in other innovative energy solutions, such as “hydrogen, methanation and carbon capture utilisation technology, but it may take time”, Nohata added.
Tokyo Gas bought its first cargo of carbon neutral LNG from Royal Dutch Shell in 2019.
The alliance is formed from a range of companies across energy, drink, and automotive sectors, including Tokyo Gas, Marunouchi Heat Supply, Yakult, Asahi Group Holdings, Mitsubishi Jisho, Isuzu Motors, and Olympus Corporation, Sakai Chemical Industry, Duskin, School Corporation Tamagawa Gakuen, Toshiba, Toho Titanium, New Otani, Sumitomo Mitsui Trust Bank, and Lumine.
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