In a groundbreaking collaboration, TotalEnergies and Tree Energy Solutions (TES) have joined forces to pioneer the development of a large-scale renewable hydrogen and carbon dioxide (CO2)-based e-natural gas (e-NG) production unit in the United States.
This ambitious project aims to harness the power of renewable energy sources, such as wind and solar, to produce up to 200,000 tonnes of synthetic gas annually. By combining hydrogen generated through 1GW of electrolysis with biogenic CO2, the partners envision the creation of e-NG with vast potential.
One of the key advantages of this project lies in the compatibility of e-NG with existing infrastructure, enabling seamless transportation and utilization without requiring significant adaptations to customer facilities. This strategic advantage opens doors for widespread adoption and usage of e-NG as a clean and sustainable alternative to natural gas.
TotalEnergies, set to operate the production unit, will equally share ownership of the project with TES. Preliminary studies are already underway, with the final investment decision (FID) expected to be reached in 2024. The location for the project is expected to be Houston, Texas, benefitting from its well-developed gas infrastructure and the region’s growing renewable power generation capacity.
Importantly, the project anticipates the potential benefits of tax credits under the 2022 Inflation Reduction Act (IRA), which offers substantial incentives of up to $3/kg for low-carbon hydrogen production. This further enhances the economic viability and attractiveness of the project while supporting the transition to a cleaner energy future.
Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies, highlighted the significance of this synthetic fuel in decarbonizing various industries, particularly those with limited electrification options. The project’s location in the United States presents numerous advantages, including robust infrastructure, a thriving renewable energy sector, and generous public subsidies that bolster its feasibility.
TES CEO Marco Alverà emphasized the project’s role as a major milestone in the advancement of large-scale e-NG production. He also underscored the importance of collaboration among all stakeholders in driving the energy transition forward, while recognizing the effectiveness of the IRA in facilitating innovative projects like this.
In February 2023, TES previously teamed up with Energies 360° to spearhead the development of renewable synthetic methane (e-NG), showcasing the company’s commitment to advancing sustainable energy solutions.
