About 50 Japanese companies are to set up an organisation to support the commercialisation of methane hydrate. At present, extraction and transportation costs are major obstacles in the development of the fuel source. The companies will share information, and with help from the Japanese government, aim to commercialise methane hydrate in or after 2023. Japan hopes to champion the new energy source, which could replace the nation's dependency on nuclear power and fossil fuels. Estimates indicate that Japanese offshore zones have reservoirs of methane hydrate that could meet 100 years' worth of liquid natural gas demand.
Roughly 50 Japanese companies are to set up an organisation to support the commercialisation of methane hydrate. At present, extraction and transportation costs are major obstacles in the development of the fuel source. The companies will share information, and with help from the Japanese government, aim to commercialise methane hydrate in or after 2023. Japan hopes to champion the new energy source, which could replace the nation's dependency on nuclear power and fossil fuels. Estimates indicate that Japanese offshore zones have reservoirs of methane hydrate that could meet 100 years' worth of liquid natural gas demand.