Developing Environmental Technologies

The Daigas Group views technology as the foundation for its corporate competitiveness and views R&D as one of its most important strategies for differentiating itself from the competition. As an environment-friendly useful energy source that is available for stable supply, natural gas has long been expected to play a crucial role in creating a low-carbon society. We have been committed to researching, developing and putting into practical use various new natural-gas-related technologies that will enable customers to live comfortable lives and develop their businesses. We announced the Daigas Group Carbon Neutral Vision in January 2021 and the Medium-Term Management Plan 2023: Creating Value for a Sustainable Future in March of the same year to further accelerate our efforts toward low-carbon or carbon-free business operations. We will actively tackle a wide range of subjects, from the advanced use of natural gas to the further utilization of renewable energy and the research and development of gas decarbonization technologies such as methanation, to accelerate technological development that will contribute to achieving carbon neutrality.

Osaka Gas is working on the development of the Smart Energy House, which is designed to offer comfortable and environmentally friendly living to people by achieving “smart” management of electricity and heat when they are created, stored and consumed. The Smart Energy House runs on three types of batteries a residential fuel cell, a solar power system and a storage batteries and uses IT to achieve the goal.

Osaka Gas and Sekisui House Ltd. conducted a living experiment of the Smart Energy House for three years from February 2011. The results of the experiment break down into three main points, which were released after technological studies were conducted to put them to practical use in the future.

Osaka Gas’s know-how to optimize the control of these three kinds of cells/batteries and Kyocera Corporation’s expertise in electricity storage systems were combined to develop a small and lightweight Smart Energy House Electricity Storage System, which can store up to 3.2 kWh power generated with ENE-FARM Type S, a fuel cell system for residential use. The storage system was launched for sale in April 2017. In April 2019, we also began to sell Omron Corporation’s Smart Energy House Electricity Storage System (with 6.5 kWh and 9.8 kWh models), which can store surplus solar power in addition to power generated with the ENE-FARM Type S residential fuel cell system.

A smart energy network forms an energy community by combining a gas cogeneration system, renewable energy, and ICT, and it brings a low-carbon energy system into reality by providing three types of new value: further promotion of energy saving and CO2 emission reduction, enhancement of energy security, and acceleration of the introduction of renewable energy.

In FY2011 to 2013, Osaka Gas participated jointly with Tokyo Gas Co., Ltd. in the “Dispersed Energy Compound Optimization Demonstration Project” of the Ministry of Economy, Trade and Industry (METI). Osaka Gas successfully completed the demonstration, with cooperation from nine customers.

Also, in the Daigas Group-owned redevelopment area in the Iwasaki district in Nishi-ku, Osaka City, we have built a “disaster-resistant town” and a smart energy network by combining heat supply facilities with a shopping mall, the hu + g MUSEUM (Osaka Gas's facility to disseminate information on food and housing), Kyocera Dome Osaka (a stadium adjacent to the museum), the Osaka Municipal Fire Department, and a general hospital. This network has been in operation since July 2013.

In anticipation of a society where renewable energy is the main power source, Osaka Gas started a living experiment, working jointly with Sekisui House, Ltd., at a house equipped with three types of batteries (fuel cell, storage battery, and solar cells) (hereinafter “3-battery house”) for about one year from April 1, 2020, in order to verify to what extent the 3-battery house can contribute to power gird stabilization.

We will confirm to what extent the 3-battery house can contribute to power grid stabilization in the following aspects.

Osaka Gas began a peer-to-peer power transaction demonstration among residents at the Osaka Gas experimental residential complex “NEXT21”^*1 in March 2019. Currently, surplus power generated by distributed energy systems is supposed to be sold to electricity retailers. In the future, customers who own distributed energy systems centered on renewable energy power generation may be allowed to sell and buy generated power without restriction. For the effective management of these transactions, blockchain technology^*2 is expected to be used.

In this demonstration, in order to confirm the effectiveness of blockchain technology in peer-to-peer power transactions, we have used the actual living environment of NEXT21 residents and conducted electric power interchange between the dwelling units with residential fuel cells and photovoltaic power generation. If peer-to-peer power transactions become a reality, we can provide new value that meets customer needs, such as directly connecting sellers of electricity of high environmental performance with buyers who want to choose it. Moreover, in case of a power grid outage, we have established an area (microgrid) where power supply continues with a compact distributed power generation system that uses the VSG function.^*3 We have also verified whether records of electric power interchange between customers is manageable with blockchain technology in the event of an outage as smoothly as in normal times.

In February 14, 2022, Osaka Gas started a demonstration experiment, at the experimental residential complex “NEXT21” owned by the company, to realize a multi-use electric vehicle (hereinafter “EV”) service (hereinafter “multi-use service”) that can provide customers with three benefits: (1) reduction of electricity charge, (2) resources for car sharing, and (3) emergency power supply systems (hereinafter “resources for BCP”). The EV car-sharing service is operated by Osaka Gas Autoservice Co., Ltd. (OGAS), a subsidiary of Osaka Gas, and OGAS aims to acquire new know-how about the car sharing business through this demonstration.

In Japan, it is required to reduce CO2 emissions in all sectors, such as homes, commercials, and industries, for the realization of carbon neutrality by 2050. The transportation sector, which accounts for less than 20% of total emissions, is also required to achieve carbon neutrality, and the use of EVs in combination with carbon neutral power resources is said to be an effective means.

Also, as the introduction of renewable energy progresses, the need for flexibility^*1, such as demand response^*2 (hereinafter “DR”) and virtual power plants^*3 (hereinafter “VPPs”) consisting of storage batteries and other resources^*4, is increasing, and EVs are expected to provide this function as “moving storage batteries.”

However, at the moment, the initial costs of an EV tend to be higher than those of a conventional gasoline-powered vehicle, which is considered as a hurdle for widespread use of EVs. In addition, as an increasing number of young people do not have interest in owning a car, use of a car-sharing vehicle in daily life is spreading.

With these trends in mind, Osaka Gas aims to develop a multi-use EV service that can provide customers with there benefits: (1) reduction of electricity charge by conducting peak shaving and DR, (2) resources for car sharing, and (3) resources for BCP. Firstly, electricity charge will be reduced by conducting efficient energy management using EVs in combination with an AI-powered system that can forecast electric power demand and the output of solar power generation systems. This AI-powered forecasting system was originally developed by Osaka Gas as a system for stationary storage batteries. Secondly, customers will earn profits by sharing their EVs with public users during the time when Osaka Gas does not conduct energy management using EVs. Thirdly, Osaka Gas aims to heighten EVs’ value as resources for BCP by enabling EVs to automatically charge their batteries prior to typhoons and other extreme weather events in response to weather warnings and supply electricity in the event of a power outage. Through the development of these multi-use services, Osaka Gas aims to create additional value of EVs as storage batteries in addition to mobility devices.

In this demonstration, the Daigas Group will provide a car sharing service to the residents of NEXT21 while conducting energy management using EVs, thereby collecting the data of actual operation and evaluating the business model. After finishing the demonstration, the Daigas Group will introduce this multi-use service to government offices, companies that own company cars, and multi-unit housing.

On October 7, 2021, Osaka Gas established the carbon neutral technology research and development site “Carbon Neutral Research Hub” (hereinafter “CNRH”) in the Torishima district of Konohana-ku, Osaka.

The Company works on research and development aimed at achieving carbon neutrality by 2050 and thoroughly reducing carbon dioxide (CO2) emissions by then. To accelerate these R&D activities, Osaka Gas will strengthen technical collaboration within the Daigas Group and promote joint research with its alliance partners. At the same time, it will enhance its experimental facilities for various carbon-neutral technologies.

The Torishima district is the place where Osaka Gas began its R&D activities. Since it established its first R&D site in 1947, the Company has been researching and developing technologies for producing city gas at the time from coal and oil and for making advanced use of natural gas as exemplified by cogeneration systems and ENE-FARM, a fuel cell system for residential use. Osaka Gas intends to further polish core technologies, such as catalyst technology and combustion technology, that it has accumulated so far and to proceed with research and development that contributes to carbon neutrality.

CNRH will work on the development of methanation^*1 technology to make city gas carbon-neutral and chemical looping combustion^*2 technology to produce green hydrogen. These are just a few examples of CNRH’s R&D activities aimed at creating future-oriented carbon-neutral energy.

In addition, the Hub will also pursue research and development for making smart use of carbon-neutral energy. Examples include development of a small engine system^*3 that works using ammonia fuel alone, attracting attention as an alternative to fossil fuels, and a virtual power plant (VPP)^*4 that utilizes dispersed power sources to stabilize the power grid in society equipped with a vast amount of renewable energy.

Furthermore, CNRH will accelerate R&D, such as the advanced use of natural gas and the utilization of biogas, which Osaka Gas has been promoting, to thoroughly reduce CO2 emissions at the moment.

In April 2022, Osaka Gas and Aqua Aerem Pty. Ltd. (hereinafter “Aqua Aerem”), an Australian hydrogen-related company, signed a joint development agreement for the Desert Bloom Hydrogen Project in the Northern Territory of Australia.

This project will use water recovered from the atmosphere and electricity derived from sunlight that is not connected to the power grid as raw materials to produce green hydrogen^*1, which will be supplied to power plants in Australia and be exported overseas.

While the Northern Territory of Australia has an extremely high amount of sunlight and is suitable for the utilization of sunlight, it is an arid region with scarce water resources. Under this project, by recovering water from the atmosphere with Aqua Aerem’s unique technology while using abundant solar resources, it is possible to produce green hydrogen. Moreover, this is a very advanced project that produces hydrogen using electricity that is not connected to the power grid and is one of the most anticipated hydrogen development projects^*2 in Australia. The long-run aim is to build multiple hydrogen production plants to produce a total of approximately 400,000 tons of hydrogen annually.

Currently, Aqua Aerem is conducting a demonstration test of a “water production unit” that recovers water from the atmosphere together with Sanguin Impact Investment, the company’s largest shareholder. With the aim of constructing a plant that will produce approximately 400 tons of hydrogen annually by the end of 2023, Osaka Gas plans to proceed with the design of the facility and consideration of supply destinations for the produced hydrogen in cooperation with Aqua Aerem. Osaka Gas will utilize the know-how that it has cultivated in the gas production business and hydrogen-related business to provide technical support for the basic design (FEED) and construction of the plant. Through participation in this project, Osaka Gas hopes to gain new knowledge about hydrogen business development.

On October 15, 2021, INPEX CORPORATION (hereinafter “INPEX”) and Osaka Gas started a technology development business targeting the practical application of a CO2-methanation system toward the carbon neutralization of gas. This initiative is based on a subsidy project commissioned to INPEX by the New Energy and Industrial Technology Development Organization (hereinafter “NEDO”). This joint technical development business is scheduled to be carried out at a newly built location connected to the Koshijihara Plant of INPEX’s Nagaoka Field Office in Nagaoka City, Niigata Prefecture, Japan. INPEX and Osaka Gas have jointly taken part in the business by entering into an operating agreement.

Methanation is a method to produce methane (hereinafter “synthetic methane”), which is the main component of city gas, by reacting carbon dioxide (CO2) with hydrogen through a catalyst. By manufacturing synthetic methane from green hydrogen produced with renewable energy and CO2, it is possible to realize the carbon neutralization of city gas. Synthetic methane can use existing city gas infrastructure and facilities and be deployed to sectors where electrification is a challenge. The Green Growth Strategy announced by the Ministry of Economy, Trade and Industry in collaboration with other ministries and agencies lists the objective of feeding Japan’s existing (pipeline) infrastructure with synthetic methane amounting to the equivalent of one percent of the country’s entire natural gas supply by 2030. The basic technical elements behind CO2 methanation, which uses the Sabatier reaction, are already established. Going forward, the requirement lies in technical development toward reducing the cost of synthetic methane production and the practical application of methanation through means such as scaling up facilities on a large scale.

The business is scheduled to consist of a demonstration test involving the production of synthetic methane using CO2 extracted from within INPEX’s Nagaoka Field Office from the second half of FY2025 to FY2026 and of introducing the produced synthetic methane into INPEX’s city gas pipeline network. The synthetic methane production capacity of the CO2-methanation facility to be developed by this business is expected to reach approximately 400 Nm³/h, which would make it one of the world’s largest scale operations by current standards^*.

Since 2017, INPEX has been conducting basic technical development on CO2 methanation at its Nagaoka Field Office at a synthetic methane production capacity of 8 Nm³/h. INPEX leverages this experience to oversee the entire business and undertake the operations of the facilities. Meanwhile, Osaka Gas oversees the design of the CO2-methanation facilities and the optimization of the process. To this end, Osaka Gas makes use of its engineering capabilities, including its catalyst technology that can produce synthetic methane in an energy-saving manner and design know-how related to scale-up, which it has cultivated since the days when it was producing city gas and alternative natural gas using crude-oil-based resources.

Furthermore, in parallel with the demonstration test at the Nagaoka Field Office, the companies conduct CO2 methanation in countries where the production of renewables-derived green hydrogen can be carried out at low cost, such as Australia, and study the commercial evaluation of importing carbon neutral methane to Japan and institutional policies toward the domestic transfer of environmental value generated by CO2 methanation outside of Japan.

In the future, the companies plan to conduct a demonstration business outside of Japan on a commercial scale (10,000 Nm³/h) and work with a view to commercializing an operation at a production scale of 60,000 Nm³/h.

In December 2021, Osaka Gas Australia Pty. Ltd. (hereinafter “OGA”), a wholly owned subsidiary of Osaka Gas, started a joint methanation study with ATCO Australia Pty Ltd. (hereinafter “ATCO Australia”), a subsidiary of ATCO Ltd., which operates energy infrastructure businesses in more than 100 countries. OGA signed a Memorandum of Understanding with ATCO Australia for the joint study in Australia.

Methanation is a technology to produce methane (hereinafter "synthetic methane") from carbon dioxide (CO2) and hydrogen via a catalyst. By producing synthetic methane from CO2 and green hydrogen that is produced from electrolysis powered by renewable energy, it is possible to realize the carbon neutralization of gas. Synthetic methane can use existing city gas infrastructure and facilities and be deployed to sectors where electrification is a challenge.

ATCO Australia operates gas distribution business mainly in Western Australia and owns two natural gas power plants in the country. As one of the key contributors to hydrogen business development in Western Australia, ATCO Australia has planned and implemented multiple hydrogen projects. It has its own CO2, hydrogen, and gas infrastructure necessary to realize methanation in Australia.

The joint study explores the viability of a methanation concept to produce synthetic methane at methanation facilities from renewables-derived green hydrogen and CO2 captured^* from carbon emitting facilities, like power plants, in Australia and from the atmosphere, inject synthetic methane into the gas distribution network in Australia through existing pipelines, and export it to Japan.

This project plans to conduct studies from 2022 to 2023 on the procurement of CO2 and hydrogen, suitable locations, effective business models, and economic viability prior to the construction of a methanation pilot plant in Australia.

In March 2022, Osaka Gas Singapore Pte. Ltd., a wholly owned subsidiary of Osaka Gas, entered into an agreement with energy-related companies in Singapore, including City Energy Pte. Ltd. and City-OG Gas Energy Services Pte. Ltd., 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 (hereinafter “synthetic methane”), which is the main component of city gas. Synthetic methane can use existing city gas infrastructure and facilities and be deployed to sectors where electrification is a challenge. In addition, by recycling CO2 and combining it with hydrogen derived from renewable energy, it is possible to contribute to the carbon neutralization of city gas in the future.

This project plans to conduct studies for about half a year on effective business models and economic viability for producing synthetic methane from hydrogen procured from inside and outside Singapore and CO2 captured in Singapore and supplying gas demand in Singapore through existing pipelines.

Osaka Gas will start a biomethanation field test^*1 using biogas generated at a sewage treatment plant in FY2023, in collaboration with Kyoto University, NJS Co., Ltd., and Osaka City. This project conducted by these four organizations was selected for the 2022 Sewerage Applied Research by the Ministry of Land, Infrastructure, Transport and Tourism on March 28, 2022.

Methanation is a chemical reaction that converts carbon dioxide (CO2) and hydrogen to methane (hereinafter “synthetic methane”), which is the main component of city gas. Synthetic methane can use existing city gas infrastructure and facilities and be deployed to sectors where electrification is a challenge. In addition, by recycling CO2 and combining it with hydrogen derived from renewable energy, it is possible to contribute to the carbon neutralization of city gas in the future.
Biomethanation is a technology that uses biological reactions to synthesize CO2 and hydrogen into methane.

The city gas industry aims to achieve a carbon neutralization rate of 5% or more for gas by 2030 by promoting the practical use of methanation and the spread of biogas. The Daigas Group Carbon Neutral Vision sets the goal of expanding the use of biogas and further deepening its methanation technology.

Focusing on the fact that approximately 40% of biogas is composed of unused CO2 (about 60% is methane), Osaka Gas has been developing methanation technology using biogas.

This field test is scheduled to start at the Ebie Sewage Treatment Plant in Osaka City in FY2023. Sewage sludge and hydrogen are injected into newly installed small-scale test equipment, where sewage sludge is converted into biogas under the same conditions as the sewage treatment plant. At the same time, biomethanation^*2 is performed to produce methane from CO2 in the biogas and hydrogen with the help of microorganisms. In FY2024, another field test is scheduled to be conducted to increase the amount of biogas produced by adding lactic acid, obtained by decomposing waste bioplastic, to the same test equipment.
The project aims to increase the amount of methane produced from sewage sludge by approximately three times compared to biogasification of sewage sludge and to raise the methane concentration to 85% or more.

In this field test, Osaka Gas will conduct a field test of biomethanation and for increasing the amount of biogas produced, Osaka City will provide the test site and sewage sludge, Kyoto University will conduct a simulation on a practical scale, and NJS Co., Ltd. will conduct an environmental assessment.

Going forward, Osaka Gas will scale up its biomethanation technology step by step and proceed with studies with a view to practical application at the sewage treatment plant in around 2030 and the injection of the obtained methane into city gas. Thus, Osaka Gas intends to verify a local production for local consumption model of thermal energy using unused local biomass resources.

Osaka Gas is engaged in basic research on a highly efficient, innovative methanation technology, which is a promising solution to city gas decarbonization. In January 2021, the Company succeeded in prototyping a practical-size solid oxide electrolysis cell (SOEC)^*1, the key to realizing innovative methanation, for the first time in Japan^*2. We believe that the SOEC technology can be applied not only to city gas decarbonization but also to the highly efficient production of hydrogen and liquid fuel. We will accelerate our R&D efforts through cooperation between industry, government and academia, and in alliance with various enterprises, with the aim of establishing this SOEC technology by around 2030.

Methanation technology, which will enable the synthesis of methane a main component of city gas from CO2 and hydrogen, will help achieve decarbonization despite the continued use of existing city gas supply networks and gas appliances and equipment. Osaka Gas has been conducting basic research on innovative methanation (SOEC methanation^*3), which is likely to enable methane synthesis with high energy conversion efficiency using CO2 and renewable energy.^*4

Unlike conventional SOECs, which are made of expensive special ceramics, the newly developed SOEC has a sturdy metal support and a thin ceramic layer on its surface, like enamel tableware. Using only 10% of the expensive special ceramic materials of conventional SOECs, the new SOEC is expected to help cut costs. It is also seen as easy to scale up because it is more shock-resistant and sturdier than conventional SOECs.
Moreover, this technology for the new SOEC is considered applicable not only to methanation but also to the highly efficient production of hydrogen, liquid fuel, ammonia, and chemicals. The SOEC technology is now still at the basic research stage, but we will further accelerate our efforts to research and develop it in active collaboration with research institutes and other companies with the aim of establishing it by around 2030.

Osaka Gas will start the SOEC methanation technology innovation project for nine years from FY2023 to FY2031 as part of the “Innovative Technology Development Related to Synthetic Methane Production,” one of the R&D items of the Green Innovation Fund Project: Development of Technology for Producing Fuel Using CO2, etc. conducted by the New Energy and Industrial Technology Development Organization (NEDO).
As elemental technology development, Osaka Gas will promote the development of SOEC electrolysis equipment and control technology for gas synthesis reactions, the optimization of the entire process, and the development of technology for effective use of waste heat. The Company plans to conduct a laboratory-scale test (synthetic methane production scale of 0.1 Nm³/h covering approximately two ordinary households) from FY2023 to FY2025, a bench-scale test (10 Nm³/h; 200 ordinary households) from FY2026 to FY2028, and a pilot-scale test (400 Nm³/h; 10,000 ordinary households) from FY2029 to FY2031.

In November 2020, Osaka Gas’s project to research and develop chemical looping combustion technology, which will contribute to decarbonization, jointly with the Japan Coal Energy Center (renamed the Japan Coal Frontier Organization in April 2021; JCOAL) was selected for commission given by the New Energy and Industrial Technology Development Organization (NEDO).^*1 Osaka Gas signed a contract with NEDO to implement this commissioned project in January 2021.
This joint project with JCOAL aims to research and develop a process of simultaneously producing hydrogen, electricity, and CO2 from coal, biomass, and other substances using chemical looping combustion technology.

Chemical looping combustion technology can combust coal, biomass, and other fuels using oxygen contained in metallic oxides, such as iron oxides, instead of oxygen contained in air. This technology is unique in that exhaust gas from this method of combustion does not contain nitrogen or nitrogen oxides derived from air, so high-purity CO2 can be separated and recovered easily. In addition, the metallic oxides lose part of their oxygen content due to their reaction to the fuel and generate high heat, which can be used to produce steam for power generation, in reaction to air, as well as hydrogen in reaction to water. Through this process, the metallic oxides return to their original condition prior to their reaction to the fuel, restoring their ability for a series of reactions. In this way, this method of combustion has a circular and reusable nature, so it is called “chemical looping combustion.”

When coal is used as fuel, this technology can produce clean hydrogen and electricity by storing or using separated CO2. When carbon-neutral biomass fuel is used, this technology can generate not only green hydrogen and electricity but also biomass-derived CO2 at the same time.

This commissioned project, which will last until March 2025, comprises the development of elemental technologies and the verification of the chemical looping combustion process with a 300 kW^*2 experimental apparatus.

To accelerate the R&D process, Osaka gas is in charge of deliberating on process optimization, collecting experimental data useful for establishing an apparatus control method, assessing the commercial feasibility of the use of biomass, and conducting demonstration tests with the 300 kW experimental apparatus. Meanwhile, JCOAL is in charge of collecting experimental data useful for identifying reaction specificity, assessing the commercial feasibility of the use of coal, and designing and producing the 300 kW experimental apparatus, as well as conducting demonstration tests with it.

The Daigas Group aims to use the results of this project to put into commercial operation a biomass-fueled plant that can produce hydrogen, electricity, and CO2. We expect to provide hydrogen produced at this plant for customers who need affordable green hydrogen and offer CO2 produced at this plant in the forms of liquid CO2 gas and dry ice. Furthermore, in the future, we aspire to provide CO2 as the material of products made through carbon recycling and use it in negative emissions projects^*3 through carbon capture and storage (CCS). We will also consider using electricity generated at this plant in Japan’s non-fossil fuel energy value trading market and selling it to customers who aim to join RE100.

To contribute to solving the issues of waste reduction and fossil resource depletion, Osaka Gas has developed Methasolution, a high-efficiency methane fermentation system that makes full use of biotechnology. This system uses technology (solubilization) that dissolves raw garbage and other organic waste (biomass) at high temperature (80℃), thereby increasing the methane gas generated by 20% over biomass dissolution by conventional fermentation processes. This technology also works for organic waste with a high content of oil and biodegradable plastics, from which methane fermentation is difficult. This technology can be used to solubilize them, enabling stable methane fermentation.

In 2009, we participated in the Kyoto Biocycle Project, a project for developing technology to combat global warming organized by the Ministry of the Environment and supervised by local governments and universities, which verified the effectiveness of ultra-high-temperature solubilization technology using school lunch garbage and other waste. We will consider the application of this technology to methane fermentation from materials from which methane fermentation is difficult and to methane fermentation from garbage bags and trays made of biodegradable plastics.

Daigas Energy Co., Ltd., a wholly owned subsidiary of Osaka Gas, has developed D-Bio Methane, an on-site biogasification system to produce biogas by processing food waste.

This system produces methane gas by fermenting food waste at high temperature (55°C). Methane gas produced by the system will be used as fuel to operate gas boilers and gas engines in order to produce carbon-neutral steam and electricity, which will be used at customers’ facilities. Target facilities include large commercial facilities and food factories where one to two tons of food waste is generated per day. This significantly reduces greenhouse gas emissions compared to conventional composting and power generation through incineration.

In developing the system, two field operational tests were conducted (from FY2018 to FY2019 and from FY2021 to FY2022) at a food factory using food waste. Through these tests, it has been confirmed that the system can be put into actual operation.
This is an energy service^* in which Daigas Energy installs the system at customers’ facilities to process food waste into biogas. Applications for the service have been accepted since October 2021.

The Association of Fibrous Activated Carbon has drafted test methods for fibrous activated carbon. They have been approved by the International Organization for Standardization (ISO) and were published in November 2017 as international standards.

Activated carbon fiber, developed in Japan and now under production by companies including Ad'all Co., Ltd., a Daigas Group company, is a product with excellent removal performance of harmful substances. The method was proposed to the ISO based on the Japanese Industrial Standards we have already acquired, using a fast-track proposal method. As a result, the method was recognized two years after the submission of the proposal, much faster than the period of at least three years required under the normal procedure.

With the diffusion of this method around the world, the function of activated carbon fibers of being able to remove harmful substances is likely to be recognized widely, possibly enhancing trust in products containing such fibers that are marketed in Japan. Consequently, environmental preservation will be promoted with safety and security expected to increase regarding people's lives.

Osaka Gas applies simulation technology in the development of industrial burners in order to enable customers to achieve higher levels of energy efficiency at their own sites. Among the various types of industrial burner, it used to take a lot of time and effort to determine the optimal operating conditions for large industrial burners and to design such burners. Simulation has enabled the prediction of combustion state under various conditions, including burner shapes, making it possible to obtain the optimum solution in a short period of time.

The consumption of energy such as electricity and gas, and the amount of electricity generated through natural energy sources, such as solar power and wind power, are greatly influenced by weather conditions, prompting Osaka Gas to step up development and implementation of weather simulation technologies.

Osaka Gas uses Weather Research Forecasting (WRF), a weather simulation model developed by a U.S. research laboratory, while combining it with data from the Japan Meteorological Agency’ and weather stations outside of Japan. The Company limits the use of WRF to western Japan regions and forecasts their weather and solar radiation quantity within an area of 2 square kilometers, up to about three days ahead. By using WRF in such a manner, Osaka Gas can obtain more accurate and detailed weather data than that which could be expected from standard weather forecasts. The effectiveness of the system has been proven within the Daigas Group, and in September 2018 approval was obtained from the Japan Meteorological Agency for a system to supply customers with weather information.

As part of our efforts to strengthen open innovation, in July 2017 we participated in a program sponsored by Plug and Play, LLC, a leading accelerator for Silicon Valley in the Untied States, in the field of energy sustainability. We are gaining ground with our search for the latest technologies and services, with the aim of accelerating our own technological development and creation of new services.

For WiL, LLC (hereinafter “WiL”), Osaka Gas invested in US-based venture capital funds “WiL Fund II, L.P.” and “WiL Ventures III, L.P.” in 2018 and 2021, respectively. Through investment in and collaboration with startups based mainly in Japan and the U.S. and the use of WiL’s expertise in new-business creation, Osaka Gas has accelerated its activities for innovation, including the realization of more convenient daily-life services and business solutions that use digital technologies, such as IoT and AI (artificial intelligence), and the advanced operation of infrastructure that uses cutting-edge technologies. In April 2021, Osaka Gas and WiL jointly invested in founding SPACECOOL, a company that develops radiative cooling materials with world-class cooling performance as a promising solution to realizing a decarbonized society. Osaka Gas will continue striving to create businesses in new growth fields through open innovation.

Osaka Gas and Daigas Energy Co., Ltd. commenced supplying carbon-neutral LNG (hereinafter “CNLNG”)^*1 to the LNG-fueled tugboat^*2 “Ishin,” operated by Nihon Tug-Boat Co., Ltd., a group company of Mitsui O.S.K. Lines, Ltd., on September 1, 2021. This is the first project in Japan to supply CNLNG for marine fuels.
The LNG-fueled tugboat “Ishin” is owned by Mitsui O.S.K., and it has been operated commercially by Nihon Tug-Boat from February 2019. Daigas Energy Co., Ltd., a wholly owned subsidiary of Osaka Gas, has been supplying LNG fuel to the tugboat since the start of commercial operation^*3 using tank trucks, and this time, it concluded a memorandum of understanding on the supply of CNLNG for several years with Nihon Tug-Boat.
In recent years, the move of environmental regulations on marine fuels has been accelerated. In April 2018, the International Maritime Organization (IMO) announced its policy to reduce greenhouse gas emissions to zero within this century as well as to halve the emissions by 2050, compared to 2008.
The Daigas Group, under the Daigas Group Carbon Neutral Vision announced in January 2021, will promote its efforts to contribute to reducing environmental impact in the marine fuel field through expanding its supply of LNG fuels to ships and utilizing CNLNG.