A unit of Osaka Gas Co. Ltd., one of the largest global LNG buyers, is partnering with midstreamer Tallgrass Energy Partners and Green Plains Inc. to explore creating a hub of low-carbon gas that could be exported to Japan through Freeport LNG.

Freeport LNG

In an agreement disclosed Wednesday, the firms outlined a partnership to study the production of 200,000 tons/year of synthetic methane in the Midwest. Synthetic methane, also referred to as syngas, is made by combining hydrogen and carbon gasses into a fuel that can be used in natural gas infrastructure.

Nebraska-based Green Plains owns and operates 11 ethanol biofuel refineries, mostly in the Midwest. The firms will study the feasibility of combining low-carbon hydrogen with carbon dioxide captured from Green Plains facilities and...