18 March 2022 Osaka Gas Singapore Pte. Ltd. (OGS) has entered into an agreement with energy-related companies in Singapore including City Energy Pte. Ltd. (as Trustee of City Energy Trust) and City-OG Gas Energy Services Pte. Ltd. (City-OG) to conduct a feasibility study on a methanation project in Singapore.
Methanation is a chemical reaction that converts carbon dioxide (CO2) and hydrogen to methane (synthetic methane), which is carbon neutral when converted from CO2 and green hydrogen that is produced from electrolysis powered by renewable electricity. Synthetic methane can be distributed through existing gas infrastructure, combusted in existing gas appliances, and used to meet the market demand for high-temperature heat that cannot be generated by electricity.
The joint study will explore business models and conduct economic evaluation over an approximately 6 months period to produce synthetic methane from low carbon hydrogen and CO2 sourced from either overseas or in Singapore.