French oil major TotalEnergies and its partner Tree Energy Solutions will jointly develop a synthetic methane production facility in Nebraska with Japanese firms Osaka Gas, Toho Gas, and Itochu, Reuters reported.
The Live Oak project will leverage Nebraska’s abundant biogenic carbon dioxide resources captured from bioethanol plants and the growing renewable power generation capacity in the US, TotalEnergies said in a statement. Under the partnership structure, TotalEnergies and Tree Energy Solutions will each hold 33.35% of the project, with the Japanese firms together holding the remaining 33.3%.
The Japanese partners will play a critical role in the project’s commercial viability, with Osaka Gas and Toho Gas serving as the main offtakers of the synthetic natural gas. This arrangement supports Japan’s goal to inject 1% synthetic methane into its natural gas grid by 2030 to reduce emissions.
The project relies on synthetic methane production technology, which differs from conventional extraction methods. Methane is typically extracted from underground reserves but can also be chemically produced. When burned, synthetic methane emits greenhouse gases but is considered less polluting due to its cleaner production process and carbon dioxide re-use.
A final investment decision is expected in 2027, with the facility planned to start operations in 2030, Reuters reported.
The Nebraska facility aligns with TotalEnergies’ broader strategic shift toward cleaner energy sources. The company aims to achieve carbon neutrality by 2050, with an intermediate target to reduce its net greenhouse gas emissions by 40% by 2030 compared with 2015 levels, according to the company’s website.
TotalEnergies has been investing in renewable natural gas, hydrogen, and carbon capture projects globally, allocating 25% of its capital expenditure to low-carbon energy between 2026 and 2030.
