Wedoany.com Report-Dec.3, TotalEnergies and its partner Tree Energy Solutions (TES) announced on Tuesday the joint development of a synthetic methane production facility in Nebraska, United States, in collaboration with Japanese companies Osaka Gas, Toho Gas, and Itochu Corporation.

The logo of French oil and gas company TotalEnergies is seen on a building in Rueil-Malmaison, near Paris, France, April 14, 2025.

The project, named Live Oak, will produce synthetic natural gas (also called e-natural gas or e-methane) by combining renewable electricity, water, and captured biogenic carbon dioxide. Osaka Gas and Toho Gas will serve as the primary long-term buyers of the output.

The synthetic methane is intended for shipment to Japan, where the two utilities plan to gradually introduce it into the national gas distribution network. Their target is to supply gas containing approximately 1 percent synthetic methane across their service areas by 2030 as part of broader decarbonization efforts.

Unlike conventional natural gas extracted from underground reservoirs, synthetic methane is manufactured through power-to-gas technology. Although its combustion releases CO2, the process recycles carbon dioxide that was recently captured from the atmosphere through biomass growth, resulting in a lower overall lifecycle emissions profile.

The Live Oak facility will make use of carbon dioxide recovered from nearby bioethanol production plants in Nebraska, as well as the state’s expanding renewable electricity generation capacity.

"The Live Oak project will leverage Nebraska's abundant biogenic CO2 resources, captured from bioethanol plants, and the growing renewable power generation capacity in the United States," TotalEnergies said in a statement.

TotalEnergies and TES will each own 33.35 percent of the joint venture, while the three Japanese partners—Osaka Gas, Toho Gas, and trading house Itochu—will jointly hold the remaining 33.3 percent.

A final investment decision for the project is scheduled for 2027, with commercial operations expected to begin in 2030. Once operational, Live Oak is projected to become one of the first large-scale synthetic methane production facilities in the United States focused on international markets.

The cooperation combines European expertise in carbon utilization and power-to-gas technology with Japanese demand for imported low-carbon energy carriers, supporting energy supply diversification and emissions reduction objectives in both regions.