TES partners with TotalEnergies for e-NG production unit
The project, which is expected to produce 100,000 to 200,000 metric tonnes of e-NG per year, will be equally owned by the partners and operated by TotalEnergies.
The partnership will combine TES's e-NG gas pedigree with TotalEnergies' expertise in renewable power generation, large-scale project management and natural gas liquefaction (LNG).
The e-NG will be produced in two steps.
Firstly, for the production of renewable hydrogen, a 1 gigawatt (GW) electrolyser will be powered by approximately 2 GW of wind and solar energy supplied by TotalEnergies through long-term power purchase agreements (PPAs).
Then, this renewable hydrogen will be combined with biogenic CO2 to obtain the e-NG.
The resulting e-NG produced can be transported and/or liquefied, then sold like natural gas, using existing infrastructure, and end customers will be able to use it without any adaptation to their facilities.
TotalEnergies and TES will carry out the preliminary studies and aim to reach a Final Investment Decision (FID) in 2024. The project is expected to benefit from tax credits under the 2022 Inflation Reduction Act (IRA).
“We are pleased to partner with TES to pioneer 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 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.