May 31, 2023 – 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 CO2. The project, which is expected to produce 100,000 to 200,000 metric tons of e-NG per year, 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 (LNG). The e-NG will be produced in two steps.

To produce renewable hydrogen, a1 gigawatt (GW) electrolyzer will be powered by approximately 2 GW of wind and solar energy supplied by TotalEnergies through long-term power purchase agreements (PPAs). This renewable hydrogen will then be combined withbiogenicCO2to 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 (IRA).

“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,” said Stéphane Michel, President, Gas, Renewables & Power at TotalEnergies. “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.”

“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,” said Marco Alverà, Chief Executive Officer of TES.