(IN BRIEF) TotalEnergies and Tree Energy Solutions (TES) have formed a partnership to develop a large-scale production unit for e-natural gas (e-NG) in the United States. The project aims to produce 100,000 to 200,000 metric tons of e-NG per year by combining renewable hydrogen and CO2. TotalEnergies will operate the project, leveraging TES’ expertise in e-NG and their own capabilities in renewable power generation, project management, and natural gas liquefaction. The e-NG will be produced through a two-step process involving a 1 GW electrolyzer powered by 2 GW of wind and solar energy supplied by TotalEnergies. The partners plan to reach a Final Investment Decision (FID) in 2024 and expect to benefit from tax credits under the 2022 Inflation Reduction Act (IRA). The resulting e-NG can be transported, liquefied, and sold like natural gas, without requiring modifications to customers’ existing facilities.
(PRESS RELEASE) PARIS, 31-May-2023 — /EuropaWire/ — TotalEnergies (EPA:TTE), a global multi-energy company with over 100,000 employees and presence in more than 130 countries as well as the world’s 3rd-largest low-carbon LNG company, and Tree Energy Solutions (TES) are pleased to announce their collaboration in the development of a significant e-natural gas (e-NG) production unit in the United States. This pioneering project aims to harness the power of renewable hydrogen and CO2 to create synthetic gas on a large scale.
With a projected annual output of 100,000 to 200,000 metric tons of e-NG, the production unit will be jointly owned by TotalEnergies and TES, with TotalEnergies taking the helm of operations. This partnership capitalizes on TES’ expertise in e-NG and TotalEnergies’ profound knowledge in renewable power generation, extensive project management capabilities, and natural gas liquefaction.
The production process will involve two key steps. Firstly, a 1-gigawatt (GW) electrolyzer will utilize approximately 2 GW of wind and solar energy, supplied by TotalEnergies through long-term power purchase agreements (PPAs), to generate renewable hydrogen. Subsequently, this renewable hydrogen will be combined with biogenic CO2 to yield the e-NG.
Importantly, the resulting e-NG can be readily transported, liquefied, and sold like conventional natural gas, utilizing existing infrastructure. End customers will be able to seamlessly integrate and utilize this innovative energy source without any adjustments to their existing facilities.
TotalEnergies and TES will collaboratively conduct preliminary studies with the goal of reaching a Final Investment Decision (FID) in 2024. This ambitious venture is poised to benefit from tax credits under the 2022 Inflation Reduction Act (IRA), offering a further incentive for its successful realization.
“We are pleased to partner with TES to pioneer the development of the e-NG industry. This synthetic fuel will contribute to the energy transition by helping our customers to decarbonize their activities, notably the ones that are difficult to electrify. This product presents two significant advantages. First, it does not require any 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.”
“The strategic cooperation with TotalEnergies is an important milestone towards large-scale e-NG production. 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 (IRA) in the United States. Today’s announcement confirms that cooperation among all players is what will make the energy transition possible,” said Marco Alverà, Chief Executive Officer of TES.
TES is a global green energy company at the forefront of the production of e-NG (electric natural gas made from hydrogen). Headquartered in Europe, TES is democratizing access to renewable energy by shipping sunshine using a proven, scalable, and cost-effective method. With a presence in the United States, Middle East, Asia and Australia, the company’s green hydrogen model uses solar and wind energy in low-cost areas with abundant sunlight or wind. This is then combined with CO2 to transform it into e-NG, a renewable molecule, easy to transport and store using existing infrastructure. TES aims to provide access to the sun and wind everywhere, supplying e-NG to industry to promote energy independence and security.
TotalEnergies is a global multi-energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. Our more than 100,000 employees are committed to energy that is ever more affordable, cleaner, more reliable and accessible to as many people as possible. Active in nearly 130 countries, TotalEnergies puts sustainable development in all its dimensions at the heart of its projects and operations to contribute to the well-being of people.
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