Hydrogen producer Tree Energy Solutions (TES) plans to develop a 1 GW electrolyzer project in the US to develop an industrial-scale gas synthetic natural product or e-gas (e-NG) and TotalEnergies will help power it with close to 2 GW of wind and solar energy capacity under long-term power purchase agreements (PPA).
The idea is to produce green hydrogen with renewable energy from TotalEnergies and combined it with CO2 of biogenic origin to obtain the e-NG. TotalEnergies will operate the project that will be equally owned by the 2 partners.
Europe headquartered TES plans the project to have a production capacity of 100,000 tons to 200,000 tons/year. It will be transported and/or liquefied and marketed as natural gas using existing infrastructure since e-NG and natural gas share same properties. End customers can use it without modifying their facilities, states the duo.
"The innovative business model developed by TES will contribute to diversifying the European and Asian energy mix by providing energy that is both renewable and affordable. This innovative project attests to the effectiveness of the American Inflation Reduction Act (IRA)," said TES CEO Marco Alverà.
TotalEnergies says the project will benefit from tax credits under the IRA.
Both the partners are now launching development studies and aim for a final investment decision in 2024.
TES says it is currently developing the '1st' European Green Energy Hub in Germany with up to 2 GW electrolyzer capacity with renewable energy sources to produce 5 million tons of hydrogen, corresponding to '10% of total annual primary energy demand of Germany'. TES says its initial production and export hubs are being developed in the Middle East and North America, respectively.