Belgium-based Tree Energy Solutions (TES), which is developing a clean energy import hub at the northern German port of Wilhelmshaven, has raised €65mn ($66mn) from a group of investors including banking group HSBC and energy company Eon.

TES says the new capital should enable it to take FID by the end of next year on the project, which will initially import LNG before switching to synthetic methane for conversion to green hydrogen.

Other investors joining the latest fundraise include Milan-based investment bank Unicredit and Zodiac Maritime, a London-based shipping company.

“Our sustainable business model has attracted the interest of world-class industrial and financial players, demonstrating the growing appetite for renewable natural gas. TES is now further progressing to become an agent of change, driving this revolution,” says TES CEO Marco Alvera.

“Our sustainable business model has attracted the interest of world-class industrial and financial players” Alvera, TES

TES plans to produce green hydrogen using solar, wind and hydropower in regions including the Middle East. It will convert the hydrogen into synthetic methane using CO₂ to produce an energy carrier that can be shipped by tanker to Wilhelmshaven. At the German port it will be converted back into hydrogen, with the resulting CO₂ captured and shipped back to the original hydrogen producer country in a “closed loop”, which guarantees the CO₂ never leaves the cycle.

“Delivering on the huge promise of green hydrogen and other clean energy solutions is critical to achieving a net-zero global economy,” says Noel Quinn, CEO of HSBC. “It will be equally important to ensuring there is a secure and affordable energy supply. We are therefore pleased to be partnering with TES on this ambitious project, which covers a number of HSBC’s markets and can positively impact our customers.”

Phase one of the project is scheduled to launch in winter 2025 at a cost of around €2.5bn.

The project would initially import LNG at a rate of around 30bn m³/yr, contributing to Germany’s efforts to ramp up gas imports to replace Russian pipeline volumes.

The terminal would take 25TWh/yr of synthetic methane from 2027, yielding more than 0.5mn t of hydrogen at Wilhelmshaven. This will rise to more than 5mn t in the project’s final stage, corresponding to a tenth of Germany’s annual primary energy demand, according to TES.

Open season

TES has signalled it is open to participation in the project by other gas importers and that it will ensure third-party access in line with EU regulations.

The company completed an open season process earlier this year to gauge interest in using the terminal. It received expressions of interest from about 25 parties for more than twice the offered capacity.  

The company says it is also developing additional energy supply and import hubs in Germany, Belgium, the Netherlands, France, Middle East, Canada and the US.

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Author: Stuart Penson