Osaka Gas joins SEA-LNG to support shipping’s green shift

Japanese utility giant Osaka Gas has joined the SEA-LNG coalition to contribute to emissions reduction in the shipping industry by decarbonising marine fuels through its new liquefied natural gas (LNG) bunkering business.

Osaka Gas has made it a priority to increase its share of renewables in its power generation portfolio and is joining forces with other companies to assess alternatives such as e-methane, among others.

Peter Keller, Chairman of SEA-LNG, notes Osaka Gas’ “critical role” in the LNG bunkering. He said, “Osaka Gas brings over a century of corporate expertise and decades of experience in LNG operations in Japan.”

“With its plan to support the adaptation of liquified e-methane, it is emphasising how energy majors, shipowners, and other LNG value chain stakeholders can work collaboratively to transition from LNG’s immediate emissions reductions to Net Zero e-methane.”

Founded in 2016, SEA-LNG is a multi-sector industry coalition whose members work together to demonstrate the benefits of LNG as a marine fuel throughout the entire value chain.

The International Maritime Organisation (IMO) has laid out several targets to decarbonise shipping, with the goal of achieving Net Zero greenhouse gas emissions by around 2050.

One focus of the IMO’s efforts to lower emissions for LNG-powered ships is to reduce the effects of methane slip.

Read more: SEA-LNG calls for increased greenhouse gas regulation from IMO

Methane slip is caused when a small amount of LNG fuel does not burn in the engine and escapes with the exhaust gases instead.

When it comes to cutting the shipping industry’s emissions, LNG has often been recognised as shipping’s fuel of the future. LNG emits 25% less CO2 than other common marine fuels for the same propulsion power, in addition to lower nitrous oxide, sulphur oxide, and particulate emissions.

Takenori Fujita, Executive Officer and Senior General Manager of LNG Trading Dept., Energy Resources and International Business Unit at Osaka Gas, said, “We are delighted to join SEA-LNG and are committed to making substantial contributions to the decarbonisation of the shipping industry.”

“To expand the use of LNG further, we are also actively working towards launching an LNG bunkering business in 2026. In addition, we plan to introduce e-methane, a synthetic gas that allows our LNG business to seamlessly transition from fossil-based natural gas to carbon-neutral gas. Our ongoing development of methanation technologies aims to produce e-methane from recycled CO2 and hydrogen.”