TES partners with Itochu Corporation to accelerate e-NG adoption for global decarbonisation

Tree Energy Solutions (TES), a global leader in the production of e-NG (electric natural gas derived from green hydrogen), has announced a strategic collaboration with Itochu Corporation, a prominent trading and investment company committed to sustainable global development. This partnership aims to drive the adoption of e-NG to decarbonise hard-to-abate sectors.

The collaboration between TES and Itochu signifies a major advancement in developing innovative solutions for global decarbonisation through e-NG, a green molecule obtained by combining green hydrogen with biogenic or recycled CO2. The companies will explore various avenues of cooperation, including equity participation in TES’ e-NG projects, the establishment of e-NG production and marketing ventures, and engagement in regulatory affairs to bolster the development and uptake of e-NG across key regions such as North America, Europe, and Japan.

Itochu has set targets to reduce GHG emissions by 40% from 2018 levels by 2030 and achieve net zero GHG emissions by 2050. With its expansive in-house market information, Itochu possesses the scale and insight to pursue new business opportunities effectively. This strategic advantage will significantly aid the scaling up of e-NG production and distribution. Actively seeking businesses that contribute to emission reduction, Itochu's commitment aligns seamlessly with TES' mission to establish a supply chain of e-NG to usher in a low-carbon economy.

Key areas of collaboration entail potential long-term offtake agreements to supply e-NG to low-carbon fuel users, primarily in Japan, leveraging Itochu's existing investments in green hydrogen production companies. Specifically, the agreement includes exploring potential opportunities to produce and promote e-NG utilising CO2 emissions from hard-to-abate sectors in North America.

"This collaboration marks a significant milestone in our efforts to develop a global portfolio of e-NG projects and strategically expand into the Japanese energy market. Japan is a crucial frontier in our growth strategy for e-NG, and partnering with Itochu will undoubtedly speed up our journey to deliver reliable and affordable green molecules," Marco Alverà, Chief Executive Officer and Co-Founder of TES, stated in a press statement.

"We embark on this journey with great enthusiasm, partnering with TES to propel the adoption of synthetic methane which aligns with our target to reduce GHG emissions by 40% from 2018 levels by 2030 and achieve net zero GHG emissions by 2050," remarked Daisuke Inoue, Executive Officer, Chief Operating Officer, Metals & Minerals Resources Division at Itochu Corporation. "Together, we are poised to unlock new possibilities, scale up e-NG production, and drive meaningful change in tackling the most challenging aspects of emissions reduction."