Tree Energy Solutions (TES) is joining forces with TotalEnergies to study and develop a large-scale production unit in the United States for e-natural gas (e-NG), a synthetic gas produced from renewable hydrogen and carbon dioxide (CO2). The project, which is expected to produce 0.1 to 0.2 MTPA of e-NG, will be equally owned by the partners and operated by TotalEnergies. This partnership combines TES’s e-NG gas know-how with TotalEnergies’ expertise in renewable power generation, large-scale project management, and natural gas liquefaction.
To produce renewable hydrogen, a 1-GW electrolyzer will be powered by approximately 2 GW of wind and solar energy supplied by TotalEnergies through long-term power purchase agreements (PPAs). The renewable hydrogen will then be combined with biogenic CO2 to obtain the e-NG.
The resulting e-NG produced can be transported and/or liquefied, then sold like natural gas, using existing infrastructure, and end customers will be able to use it without any adaptation to their facilities.
TotalEnergies and TES will carry out the preliminary studies and aim to reach a final investment decision (FID) in 2024. The project is expected to benefit from tax credits under the 2022 Inflation Reduction Act.
“We are pleased to partner with TES to pioneer development of the e-NG industry,” said said Stéphane Michel, president of Gas, Renewables, & Power at TotalEnergies. “This synthetic fuel will contribute to the energy transition by helping our customers decarbonize their activities, notably the ones that are difficult to electrify. This product presents two significant advantages. First, it does not require new logistical infrastructure since e-NG and natural gas have the same properties and can therefore be mixed in existing infrastructures. Second, our customers will not have to change their current industrial processes. The United States has many advantages for the development of our first e-NG project, including well-developed gas infrastructure, growing renewable power generation capacity, and significant public subsidies.”
“The strategic cooperation with TotalEnergies is an important milestone toward large-scale e-NG production,” said Marco Alverà, CEO of TES. “Our purpose and vision are to accelerate the race to zero emissions and the development of hydrogen. The innovative business model developed by TES will help to diversify the European and Asian energy mix, making affordable renewable energy available. This groundbreaking project testifies to the effectiveness of the Inflation Reduction Act in the United States. Today’s announcement confirms that cooperation among all players is what will make the energy transition possible.”