OMAHA, Neb.--(BUSINESS WIRE)--Green Plains Inc. (NASDAQ:GPRE), Tallgrass and Osaka Gas USA, a wholly owned subsidiary of Japan-based Osaka Gas, today announced the commencement of a joint feasibility study to evaluate the production of up to 200,000 tons per year of synthetic methane in the U.S. Midwest.
The project partners aim to produce synthetic methane from low-carbon hydrogen and biogenic carbon dioxide (CO2) captured from ethanol biorefineries owned and operated by Green Plains. The joint study, which is scheduled to be complete in mid-2023, will focus on the production of low-carbon hydrogen that incorporates the capture and permanent sequestration of at least 95% of the fossil-based CO2, coupled with the methanation of low-carbon hydrogen with biogenic CO2 from fermentation.
“This is an important step in our decarbonization efforts across our platform, further demonstrating the crucial role our assets can play in the future of clean energy production using proven technologies,” said Todd Becker, Green Plains President and CEO. “Our conversion of biogenic CO2 to low-carbon fuels can add significant value for our stakeholders while helping to meet ambitious climate goals around the planet. This innovative collaboration with Osaka Gas USA and Tallgrass builds on our vision of producing clean energy while reducing carbon emissions for our partners in Japan by utilizing our asset base in place today.”
Concurrent to the joint study, Osaka Gas USA will examine strategies to liquefy synthetic methane at Freeport LNG and transport it to Japan, where it would be used for city gas applications such as industrial burners, home heating and cooking. Unlike other decarbonized gaseous energy carriers, synthetic natural gas can be transported and distributed using existing natural gas infrastructure. The project is in line with the Japanese government's goal to replace 90% of Japan’s city gas volumes with e-methane by 2050.
“Osaka Gas USA is excited to participate in this study with Tallgrass and Green Plains as this marks another promising methanation project in the United States, which will greatly accelerate our goal to become carbon neutral by 2050,” said Sunao Okamoto, Osaka Gas USA President and CEO. “This valuable opportunity will enable us to foster long-lasting relationships with strategic partners who share similar decarbonization commitments while continuing to gain momentum in expanding our existing carbon neutral business in the U.S.”
“Japan’s decarbonization objectives are important to progressing the global fight against climate change” said Alison Nelson, Vice President Business Development for Tallgrass. “We are proud to be joining Osaka Gas USA and Green Plains in this endeavor and to further establish the U.S. as a global leader in clean energy production.”
Cautionary Note Concerning Forward-Looking Statements
Disclosures in this news release contain forward-looking statements. All statements, other than statements of historical fact, included in this press release that address activities, events or developments that management expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the focus of the feasibility study and the expected size and benefits of the synthetic methane production project under development. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Tallgrass, Green Plains and Osaka Gas USA, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements, and other important factors that could cause actual results to differ materially from those projected, including those set forth in reports and financial statements made available by Tallgrass, Green Plains and Osaka Gas USA. Any forward-looking statement applies only as of the date on which such statement is made, and Tallgrass, Green Plains and Osaka Gas USA, do not intend to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
About Green Plains Inc.
Green Plains Inc. (NASDAQ:GPRE) is a leading biorefining company focused on the development and utilization of fermentation, agricultural and biological technologies in the processing of annually renewable crops into sustainable value-added ingredients. This includes the production of cleaner low-carbon biofuels, renewable feedstocks for advanced biofuels and high-purity alcohols for use in cleaners and disinfectants. Green Plains is an innovative producer of Ultra-High Protein and novel ingredients for animal and aquaculture diets to help satisfy a growing global appetite for sustainable protein. The Company also owns a 48.8% limited partner interest and a 2.0% general partner interest in Green Plains Partners LP. For more information, visit www.gpreinc.com.
Tallgrass is a leading energy infrastructure company focused on safely, reliably and sustainably delivering the energy and services that fuel homes and businesses and enable quality of life. We are committed to being at the forefront of efforts to decarbonize our world. An investor group led by Blackstone Infrastructure Partners, which includes Enagás SA, GIC, NPS and USS, owns the outstanding equity interests in Tallgrass. Learn more at Tallgrass.com.
About Osaka Gas USA
Osaka Gas USA is a wholly owned subsidiary of Osaka Gas Co., Ltd., one of the largest energy utility companies in Japan, focusing on its four core businesses of power generation, shale gas development, natural gas liquefaction at Freeport LNG, and future energy development/innovation. Osaka Gas USA strives to contribute to achieving a low carbon/carbon neutral society by developing renewables and methanation as well as natural gas-related business. For more information, please visit https://www.osakagasusa.com/.
Green Plains Inc. Contacts
Investors: Phil Boggs | Executive Vice President, Investor Relations | 402.884.8700 | [email protected]
Media: Lisa Gibson | Communications Manager | 402.952.4971 | [email protected]
Tallgrass Media Inquiries
Steven Davidson | Vice President | 817.988.4284 | [email protected]