Tokyo Gas Launches Coalition for LNG Carbon Offsets

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Published Mar 14, 2021 11:21 AM by The Maritime Executive

Tokyo Gas is joining forces with 14 corporate partners and customers to promote imported conventional LNG that is marketed with carbon offsets, dubbed "carbon neutral LNG." 

"The carbon credit for [carbon neutral LNG] involves the CO2 reduction effects of environmental conservation projects throughout the world that have been certified by a reliable carbon credit certifier," said Tokyo Gas in a statement. "It is deemed to be carbon neutral on a global scale even when burned."

The coalition's partners also include Isuzu, Asahi Group, Toshiba and Sumitomo Mitsui Trust Bank, among others. 

Tokyo Gas began marketing LNG with carbon offsets as a carbon neutral-branded option in 2019, beginning with the world's first certified shipment from Royal Dutch Shell. Tokyo Gas became the first utility in Japan to supply it to residential gas customers (Hokkaido Gas has since pledged to follow suit as well). 

The credits used for the initial deal were bought from Shell’s portfolio of nature-based projects, including a peatland conservation project in Indonesia and a national park project in Peru. According to Shell, the projects also have extra benefits, like local jobs, improved soil productivity and cleaner air and water. In general, Shell selects carbon offset projects certified under the Verified Carbon Standard, Gold Standard or the American Carbon Registry. 

"We want to spread the use of carbon neutral LNG, which is the most feasible measure right now to slash CO2 emissions," said Tokyo Gas EVP Kunio Nohata at a news conference Tuesday. "We are seeking an innovation in hydrogen, methanation and carbon capture utilization technology, but it may take time."

Japan is the largest importer of LNG in the world, though China is just behind and may surpass it by 2022.