Chris Goggin explains what E-methane is, how it is produced and its potential relevance inside the UK alternative gasses market. An informed synopsis of the current off grid gas and energy market will be used to highlight how E-methane and other lesser well-known gasses such as Bio-LPG and biomethane can contribute towards off-grid NetZero aims and support commercial enterprises.
To attain NetZero status future usage of fossil fuels will need to be limited in the medium term and eventually nullified, completely. A range of alternative energies that include renewables, hydrogen and clean electrification will replace fossil fuels. E-Methane is a new gas that has been identified as an additional low carbon gaseous alternative capable of performing the same role as fossil fuels.
E-methane is the abbreviated name given to electro-methane, a gas which is created by extracting captured carbon dioxide and blending with green hydrogen, itself produced via renewable energy.
The number of e-methane production plants across Europe and Australia is notably increasing. Danish energy supplier, Andel, and Danish biogas company, Nature Energy, have invested DKK 100 million in constructing and operating an e-methane plant located in Glansager, Denmark.
Australia is the chosen location of three Japanese energy concerns who are exploring e-methane production possibilities. Tokyo Gas, Toho Gas, Osaka Gas Australia (OGA) alongside Australian oil and gas company Santos have entered into an agreement that will focus on producing 130,000 tonnes of e-methane annually. E-methane is 1 of 14 priorities that the Japanese government’s Green Growth Strategy has highlighted as a major component towards Japanese decarbonisation objectives.
Finnish energy company Nordic Ren-Gas Oy is developing a Power-to-Gas project located in Tampere, Finland. The production facility will manufacture hydrogen and e-methane as well as provide power for local district heating sourced through waste heat. Nordic Ren-Gas Oy are actively seeking to introduce a decentralised e-methane production network throughout Finland that assists in reducing fossil fuel usage.
E-methane is remarkably like biomethane which is produced in a separate process – methane is captured from natural biological waste and forms during a natural process called ‘anaerobic digestion.’ In the absence of oxygen microorganisms will begin to break down matter yielding a gas – methane. Once impurities are removed the methane gas becomes upgraded and biomethane is created.
Both biomethane and e-methane are capable of identical operating behaviour when compared to fossil fuels and can therefore be placed into existing infrastructure. Biomethane and e-methane can immediately fulfil the role of fossil fuels without any fracture towards appliance operating efficiency, commercial activity, or societal cohesion.
E-methane and biomethane are potential fuels that can be used in off-grid applications also. The UK off-grid fuel market is a growing economic entity and is also a hard-to-decarbonise section of society. The UK’s gas grid network extends to 84% of UK households. Of the remaining 16%, 2 million properties are rural off grid homes and require daily power.
The primary power source used to fuel off grid UK properties and commercial activities is LPG and there is growing usage of BioLPG. The tourism and leisure sector also relies on off grid fuels and utilises both LPG and BioLPG as its main source of power. There are 2,643 businesses in the Caravan & Camping Sites industry in the United Kingdom, which has grown at a CAGR (Compound Annual Growth Rate) of 3.6 % between 2020 and 2025.
LPG is created through the refining of crude oil or extracted during the process of manufacturing natural gas. LPG consists of butane and propane and is considered a low carbon alternative to fossil fuels.
BioLPG contains an almost identical chemical structure to LPG. BioLPG is produced from renewable materials derived from a diverse mix of sustainable biological feedstocks and processes. Supported through cleaner sourced chemical ingredients BioLPG provides huge benefits in carbon reductions and air quality, compared to traditional off-grid fuels such as heating oil.
BioLPG is conceptually renewable and sustainable, as it is made from a blend of waste, residues, and sustainably sourced materials. BioLPG, can be described as an eco-propane, the chemical makeup of this gas is identical to LPG and is therefore compatible with existing in situ LPG products from a combustion perspective.
The market for synthetic and biogas in Europe is expanding, UK liquefied petroleum gas market is projected to lead the regional market in terms of revenue in 2030. In the UK, around 10% of off-grid properties use LPG for heating, which translates to approximately 220,000 users. In terms of revenue, UK accounted for 4.3% of the global liquefied petroleum gas market in 2023.
Off grid fuels, synthetic gasses and biogas are areas in which growth is expected to rise steadily through the up-and-coming decade. E-methane is considered a convenient alternative capable of being placed in existing infrastructure and successfully fulfilling the role of natural gas. European and the Asia-Pacific regions are refining strategies that centre on the production and distribution of e-methane and are confident that commercial sales will follow.
Biogas and synthetic gasses such as BioLPG, LPG, e-methane and Biomethane will play a discernible role in the global pursuit of NetZero. Current UK and European off grid gas markets maintain an upward trajectory.
Potential usage of alternative gasses can only increase as NetZero time limits recede, meaning that any gas capable of operational capabilities and behavioural similarities to natural gas will instantly be viewed favourably due to current infrastructure and natural gas reliance.
As the continued pursuit of low carbon and zero carbon energy and power sources continues both BioLPG and e-methane are promising variants on the road to net zero. To learn more about renewable fuels and technologies follow our free newsletter at https://www.rinnai-uk.co.uk/contact-us/newsletter-sign
Rinnai follows all domestic and international developments in current and future energy information. Doing so, provides potential customers with a solid foundation of information that assists product purchase. Any news relating to appliance or energy options that is shaped by legislation will be immediately shared with UK customers. Access to information that affects customer judgment is an area that is Rinnai values.
- The UK’s gas grid network extends to 84% of UK households. Of the remaining 16%, 2 million properties are rural off grid homes. (Liquid Gas UK)
- There are 2,643 businesses in the Caravan & Camping Sites industry in the United Kingdom, which has grown at a CAGR of 3.6 % between 2020 and 2025. (IBIS World)
- In terms of revenue, UK accounted for 4.3% of the global liquefied petroleum gas market in 2023. (Horizon Grand View Research)
- The UK market is expected to grow at a CAGR of 2.1% from 2024 to 2030.
- In terms of segment, residential / commercial was the largest revenue generating application in 2023. (Horizon Grand View Research)
- In Europe, UK liquefied petroleum gas market is projected to lead the regional market in terms of revenue in 2030.
- In the UK, around 10% of off-grid properties use LPG for heating, which translates to approximately 220,000 users.
E-methane holds great promise for the decarbonisation of energy uses. On the one hand, it converts non-storable electricity into storable renewable gas. On the other, it recovers the CO2 released by industrial sites or extracted from the biogas during the purification phase of biogas production, pyrogasification or Hydrothermal Gasification (processes for producing renewable gases from biomass, solid waste or liquid or wet waste, respectively).
Thanks to e-methane, the CO2 released is given a new lease of life, helping to reduce the global carbon footprint.
E-methane can be stored and injected directly into the NaTran transmission system, without requiring any prior adaptation of the infrastructure. As a substitute for natural gas, it covers domestic and industrial uses (heating, electricity). It can be used in road (bioGNV) and sea transport.
Andel and Nature Energy’s work with the green transition has reached a crucial milestone. In a partnership formed in the autumn of 2022, the two companies have invested DKK 100 million in a biological Power-to-X plant in Glansager on Als in Denmark, which is now ready for production. Here, Andel’s electrolysis plant converts excess electricity from the sun and wind into hydrogen that is fed into Nature Energy’s methanation plant, where it combines with CO2. It forms e-methane, thereby increasing biogas production from the existing biogas plant and reducing the amount of CO2. Nature-energy.com
Austrade International
Tokyo Gas, Toho Gas, Osaka Gas Australia (OGA) and Santos have entered into an agreement to explore e-methane production in Australia.
Under the agreement, the four organisations will conduct technical, regulatory, and commercial studies to produce 130,000 tons (180 million Nm3/year) or more of e-methane annually. The studies will also explore exporting the e-methane to Japan.
OGA will conduct Pre-Front End Engineering and Design (Pre-FEED) work to produce e-methane in the Cooper Basin, located in central Australia. E-methane is a carbon-neutral synthetic methane. It is produced by capturing carbon dioxide and combining it with green hydrogen.
The prospective project will be located at Moomba, an area where Santos has been developing and operating natural gas fields for many years. The area offers access to:
- abundant solar and wind energy
- carbon dioxide sources from nearby projects
- natural gas pipelines to eastern Australia and the Northern Territory
- liquified natural gas (LNG) export terminals at Gladstone in Queensland and Darwin in the Northern Territory.
This article appeared in the July/August 2025 issue of Energy Manager magazine. Subscribe here.