(Reuters) -Texas-based utility firm CPS Energy on Tuesday said it entered into an agreement with energy company Modern Hydrogen on a new project to explore the potential for increasing electricity grid resiliency and enabling cleaner power generation from natural gas.

"CPS Energy will pilot Modern Hydrogen's technology to convert natural gas into clean hydrogen as an ongoing gas-decarbonization service," CPS Energy said in a statement.

Instead of burning natural gas and managing the resulting carbon dioxide emissions, Modern Hydrogen, which is based in Seattle, employs a process that breaks down the hydrocarbons in natural gas to produce hydrogen and solid carbon, CPS Energy said. 

"The solid carbon is captured and reused in products like asphalt for infrastructure projects," it added.    

CPS Energy has over 950,000 electric and 389,000 natural gas customers in San Antonio and portions of seven adjoining counties.