The wireless adapter does appear in OSMC network settings. The driver is loaded as far as I can tell. If I restart networking service via the command line wlan0 is brought up with the static IP and hostapd works correctly.
Connman is doing some configuration with wlan0 which means when networking is configured during bootup I get a message saying wlan0 is already configured.
I managed to blacklist wlan0 in the /etc/connman,conf by adding the following line:
NetworkInterfaceBlacklist=wlan0
Doing this allows networking to work and brings up wlan0 with the static IP I have specified in interfaces, this in turn allows hostapd to work properly.
However, now that you’ve mentioned connman can handle tethering, I’d like to set this up instead 
Is there any beginners info on setting up connman, not really sure where to begin within connmanctl.
I’d like to use my wifi adapter as an accesspoint/hotspot. The Ethernet port on the rpi2 is connected to my router.