TotalEnergies, Tree Energy Solutions (TES), Osaka Gas, Toho Gas and Itochu have signed an agreement to co-develop the Live Oak project, a synthetic natural gas production unit in Nebraska. The consortium plans to start operations by the end of the decade, with a final investment decision expected in 2027.
The capital structure provides for equal participation among the main partners. TotalEnergies and TES will each hold 33.35% of the project, while Osaka Gas, Toho Gas and Itochu will jointly hold the remaining 33.3%. This strategic partnership marks the first direct involvement of Japanese gas companies in an industrial-scale e-gas infrastructure in the United States.
Technical capacities and development timeline
The current phase focuses on Front-End Engineering Design (FEED) studies. The facility targets 250 megawatts of electrolysis capacity, combined with an annual production of 75,000 tonnes of e-gas through a methanation process. The gas produced will primarily serve the Japanese market, with Osaka Gas and Toho Gas as contracted off-takers.
The required CO2 feedstock will be sourced from bioethanol plants located in Nebraska. The site was selected for its proximity to biogenic carbon dioxide and the region’s increasing availability of green electricity. The Live Oak project aligns with the goals of Japanese energy firms to inject 1% of carbon-neutral gas into their national gas mix by 2030.
Industrial standardisation and exports to Asia
Synthetic natural gas, or e-gas, has the same molecular composition as fossil natural gas, allowing its use without modification in current liquefied natural gas (LNG) infrastructures. This compatibility facilitates integration into existing logistics chains, from maritime transport to end-user distribution.
The Live Oak project represents the first joint investment of this kind between European and Japanese players in the U.S. e-gas sector. It reflects the strategy of Asian energy firms seeking long-term alternative synthetic gas supply while leveraging American industrial resources.