Brussels-based Tree Energy Solutions (TES) recently concluded its third fundraising round, securing €140M from various financial institutions and energy investors.
While this achievement marks a significant milestone for the company, a critical examination of the provided information reveals both opportunities and challenges for TES in the hydrogen energy sector.
TES’s successful fundraising round saw participation from notable financial institutions and energy investors, including Azimut Group, Fortescue, E.ON, HSBC, O.G. Energy, and others. Existing shareholders such as AtlasInvest, Reggeborgh, Zhero, and Zodiac Maritime also contributed to the funding. While the involvement of reputable investors signals confidence in TES’s business model, it’s essential to assess the implications of this financial backing in the context of the company’s long-term objectives and industry standards.
TES positions itself as a global green energy company specializing in the production of e-NG (electric natural gas derived from green hydrogen). e-NG, described as a hydrogen-based green molecule chemically identical to natural gas, presents a promising avenue for decarbonizing the energy sector. TES’s emphasis on leveraging renewable energy sources, such as solar and wind, to produce green hydrogen reflects a proactive approach towards sustainability. However, the scalability and efficiency of e-NG production methods warrant careful evaluation to ensure their viability on a large scale.
TES has forged strategic partnerships with leading energy companies, including TotalEnergies, Osaka Gas, Toho Gas, Tokyo Gas, Fortescue, and ADNOC, to develop a pipeline portfolio of large-scale e-NG projects worldwide. While these collaborations signify TES’s commitment to industry collaboration and market expansion, it’s essential to assess the extent of synergies and potential challenges associated with such partnerships. Additionally, evaluating the regulatory landscape and market dynamics in each region will be crucial for TES’s long-term success.
