Three Partners to Jointly Undertake Proof of Concept (PoC) Applying “CO₂NNEX™”, a Digital Platform for CO₂ Accounting across its Supply Chain for Synthetic Methanes

Today, discussions are underway concerning methods for counting and using CO₂ in the context of CCU (carbon dioxide capture and utilization: with the captured CO₂ used in the manufacture and usage of fuels, chemicals, building materials, etc.), including methanation, and studies are going forward into the application of the accounting methods to the use of synthetic methane, which is seen as a recycled-carbon fuel. The PoC to be jointly implemented is an initiative aimed at visualizing CO₂ emission volumes across the entire supply chain, from synthetic methane’s production to supply and combustion. The results of the PoC are expected to be useful for achieving visualization of the CO₂ supply chain within CCU, setting CO₂’s trading methods, transferring its environmental value, and estimating the carbon footprint of synthetic methane supply recipients.

CO₂NNEX™ is a digital platform created for CCUS (CO₂ capture, utilization and storage) aimed at connecting CO₂-related ecosystems and accelerating the expanded use of environmental value. Under the current initiative, CO₂NNEX™ will be applied to visualize original information on CO₂ and hydrogen – the materials from which synthetic methane is made – and the CO₂ emission volumes generated throughout synthetic methane’s lifecycle, from production to transport, supply and combustion. By providing this traceable data, a shared platform will be developed for realizing visualization of synthetic methane’s environmental value. The project also aims to incorporate future enhancement of trade – for example, through transfer of synthetic methane’s environmental values – and to develop a system to serve as an industry standard usable by other manufacturers of synthetic methane.

Today, a variety of demonstration projects relating to methanation are being planned, toward the production and widespread adoption of synthetic methane. Osaka Gas, MHI and IBM Japan, by applying the results of this PoC to future demonstrations of methanation, will contribute to achieving broad social adoption of synthetic methane and the realization of a carbon neutral society.

About CO₂NNEX™
CO₂NNEX™ is a digital platform that provides transparency and flexibility in the CO₂ supply chain and its environmental values in step with the rapid expansion of the value chain linking CO₂ capture, storage and utilization, toward realizing a carbon neutral society. Actual CO₂-related data is interconnected through IoT, and blockchain ensures advanced security with assured neutrality and fairness.

About methanation
Methanation is technology for synthesizing methane, a key component of natural gas from hydrogen and CO₂. The resulting product is known as “synthetic methane.” Use (combustion) of this synthetic methane results in no effective increase in CO₂ for society as a whole because CO₂, which is normally emitted into the atmosphere, is captured and recycled for use in making synthetic methane. Also, methanation is expected to be an economically efficient way of achieving carbon neutrality, with synthetic methane being distributed through the existing gas infrastructure and combusted in existing gas appliances, requiring no large-scale investment for constructing new energy systems or modifying the existing ones.

Concept of a shared platform applying CO₂NNEX™
A shared platform aims for quantification of synthetic methane’s environmental values by quantitatively documenting information for tracking and managing CO₂ emissions relating to the manufacture, supply (including transport) and usage of synthetic methane at multiple business operators and locations.

Osaka Gas
In January 2021 the Daigas Group announced its “Carbon Neutral Vision” for achieving carbon neutrality by 2050 through decarbonization of the component ingredients of city gas by methanation and other means, and of its power sources primarily through use of renewable energies. The company is also considering a number of methanation projects overseas – notably, in Australia, South America and Southeast Asia – in a drive to achieve broad adoption of methanation.

MHI
MHI Group is actively involved in programs targeting the realization of a carbon neutral society, and building a CO₂ ecosystem is central to its energy transition initiative. As a global leader in CCUS, the company aims to accelerate this ecosystem development by seeking widespread adoption of related hardware as well as the CO₂NNEX™ digital platform.

IBM Japan
Applying its experience in supporting numerous customers worldwide, IBM Japan looks to accelerate CO₂NNEXT™’s development with its blockchain enabling data sharing with safety, transparency and outstanding reliability; its hybrid cloud technology for building an agile and flexible IT environment linking the cloud and existing systems; and its AI technology enabling visualization, automation and optimization of the value chain.