Tree Energy Solutions (TES) will collaborate with the French energy major TotalEnergies in the construction – in the United States – of a large-scale production plant of synthetic natural gas (e-NG) generated by the combination of renewable hydrogen and CO2.
The new American hub, which will be able to produce a quantity of synthetic gas between 100,000 and 200,000 tons per year, will be owned with equal shares by TotalEnergies and TES, a German company led by the Italian manager Marco Alverà which is building a terminal for the sea import of green energy carriers.
In order to be able to produce the H2 needed to then generate e-NG, a 1 GW capacity electrolyser will be installed at the new site (the precise location of which has not yet been disclosed), which will be powered by 2 GW of renewable energy, solar and wind, supplied by TotalEnergies through long-term power purchase agreements (PPAs).
The synthetic natural gas obtained by combining hydrogen with carbon dioxide (which in turn comes from sequestration and storage processes) will then be sold on the market and transported - in liquid or gaseous form - using the already existing infrastructure dedicated to the methane of origin natural, which can handle the synthetic version without the need for any modification.
TotalEnergies and TES have already started the preliminary studies for this project, which will be able to benefit from the concessions, in the form of a tax credit, provided by the Inflation
US Reduction Act (IRA). The FID (Final Investment Decision) is expected during the next year.
“We are delighted to be able to collaborate with TES in the development of the nascent e-NG industry” said Stéphane Michel, President Gas, Renewables & Power of TotalEnergies. “This synthetic fuel can contribute to the energy transition by helping our customers decarbonise their businesses, especially those that are difficult to electrify. Synthetic gas has several advantages, related to the fact that it has the same physical and chemical properties as natural gas: for this reason, there is no need to modify transport and storage infrastructures, and above all, users do not have to adapt their plants and industrial processes ”. As for the choice to carry out this project in America, Michel explained that “the USA has many advantages: a well-developed gas infrastructure network,
“The strategic collaboration with TotalEnergies is a fundamental step to arrive at large-scale e-NG production” added Marco Alverà, Chief Executive Officer of TES. “Our goal is to accelerate the race towards zero emissions and the development of a hydrogen economy. This project testifies to the effectiveness of the US Inflation Reduction Act (IRA), and also that collaboration between all players in the energy industry is what will make the transition possible”.
