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TES and Toho Gas Sign Agreement for Close Collaboration for the Value Chain of e-NG

TES, a global green energy company leading the way in the production of e-NG (electric natural gas derived from green hydrogen, widely referred to as e-methane in Japan), and Toho Gas Co., Ltd. (“Toho Gas”, President: Nobuyuki Masuda), are pleased to announce that both companies have signed a comprehensive agreement to explore the development of an e-NG supply chain in order to support Japan’s decarbonization goals.

e-NG is synthetic methane produced from non-fossil fuel energy sources such as green hydrogen. Because it can utilize existing city gas infrastructure and consumer appliances, it is expected to be a fuel that will help smooth the transition to carbon neutrality and reduce additional social costs in Japan. Several e-NG production plants have already been approved in Europe and the United States, and they are attracting increasing attention as a promising option toward achieving carbon neutrality.

As part of this collaboration, both companies will work together to raise awareness of e-NG and design systems such as CO₂ counting rules and financial support as well as the early implementation of e-NG in society, with the aim of achieving carbon neutrality.

Marco Alverá, CEO of TES, commented: “We are proud to partner with Toho Gas, a company who shares our ambition of accelerating the energy transition and recognises e-NG as a tool for achieving this goal. Current climate targets can only be met with equally ambitious new energy projects, and close collaboration is essential to develop the necessary regulatory framework to facilitate this. We are delighted to work alongside Toho Gas to deliver green, affordable energy across all industries.”

Takeo Haigou, Managing Executive Officer of Toho Gas, commented: “Toho Gas understands that TES is a leading company for creating the international supply chains and global implementation of e-methane, and we are very encouraged to collaborate with TES as a partner. Toho Gas has set a goal for carbon neutral including our customer's site by 2050. To achieve this goal, we believe that e-methane will play a key role, and aim to supply e-methane more than 1% of our city gas sales volume by 2030. Toho Gas will accelerate these plans through the collaboration with TES.”

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