The two companies say the jointly owned project will combine TES’s experience in e-NG gas with TotalEnergies’ expertise in renewable power generation, large-scale project management and natural gas liquefaction (LNG).
The project, which is to produce between 100,000 and 200,000 tonnes of e-NG per year, will be powered via long-term power purchase agreements (PPAs) with renewable energy projects already owned by TotalEnergies.
The partners are carrying out preliminary studies and aim to reach a final investment decision in 2024. The project is expected to benefit from tax credits under the 2022 Inflation Reduction Act (IRA) and will be operated by TotalEnergies.
The e-NG will be produced in two steps. First a 1GW electrolyser will be built to produce green hydrogen, powered by approximately 2GW of wind and solar energy supplied by TotalEnergies through PPAs. The green hydrogen will then be combined with biogenic CO2 to produce e-NG.
The new synthetic fuel is said to present two significant advantages: 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; and it does not require customers to change their current industrial processes.
“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,” said Stéphane Michel, president of gas, renewables and power at TotalEnergies.
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