A group of Japanese firms, including some of the largest buyers of LNG, agreed to study the production and export of hydrogen blended with carbon dioxide (CO2) in Texas and Louisiana.

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Mitsubishi Corp., Osaka Gas Co. Ltd., Toho Gas Co. Ltd. and Tokyo Gas Co. Ltd. have disclosed an agreement to explore a U.S.-based supply chain of synthetic methane, referred to as syngas or e-methane. The firms have outlined plans to test whether blending hydrogen made with renewable electricity, referred to as green hydrogen, with CO2 captured from industrial processes could create a cheaper way to export low-carbon fuel to Japan.

The firms are studying Texas and Louisiana with an eye toward Sempra Infrastructure’s Cameron liquefied natural gas facility as a possible starting point to export...