December 02, 2025 [Reuters]- French oil major TotalEnergies and its partner Tree Energy Solutions will jointly develop synthetic methane with Japanese firms Osaka Gas, Toho Gas and Itochu at a facility in the U.S. state of Nebraska, it said on Tuesday.

Osaka and Toho gas companies will be the main offtakers, or contracted buyers, of the synthetic gas, as part of a goal to inject 1% into Japan’s gas grid by 2030 and reduce emissions.

Methane — also known as natural gas — is usually drilled out of the ground, but can be chemically formed as well. When burned, synthetic methane emits greenhouse gases but is considered less polluting due to its cleaner production process and re-use of CO2.

A final investment decision is expected in 2027 on the facility, with startup in 2030.

“The Live Oak project will leverage Nebraska’s abundant biogenic CO2 resources, captured from bioethanol plants, and the growing renewable power generation capacity in the United States,” TotaEnergies said in a statement.

Total and TES will each hold 33.35% of the project, with the Japanese firms together holding the remaining 33.3%.