Driving the Green Transition: The Promise of e-NG and CO2 Utilisation
Key Ideas
  • Tree Energy Solutions (TES) aims to produce one million tonnes of e-NG annually by 2030, a synthetic natural gas created by combining renewable hydrogen and recycled CO2 with existing technologies, offering over 85% emissions reduction.
  • TES Director Tyler Cole highlights the importance of 45Q tax credits in promoting carbon management projects and discusses how TES engages with policymakers to enhance the value of CO2 utilisation.
  • Challenges in the North American CO2 market include the need for increased clarity on policies and guidance for CCUS projects, especially in addressing noise in the industry and educating stakeholders on the benefits of CO2 utilisation.
  • TES emphasizes the importance of responsible scaling of the CCUS supply chain and urges policymakers to provide clarity on key issues like permitting and environmental impacts to support the emerging CO2 market disruptions.
Tree Energy Solutions (TES) is committed to driving the green transition and achieving global decarbonisation. A key aspect of their mission is the production of electric natural gas (e-NG), a synthetic ultra-low-carbon natural gas made by combining renewable hydrogen and recycled CO2 through methanation. This approach allows for a significant reduction in emissions, with over 85% less lifecycle emissions compared to fossil natural gas. In an upcoming presentation at gasworld's CO2 Summit, TES will discuss the importance of CO2 utilisation in e-NG production. The company envisions a system where CO2 is recycled within the company's operations, mirroring the concept of returning milk bottles for reuse. Director of Climate Solutions, Tyler Cole, emphasizes the immediate deployability of e-NG in existing gas networks without the need for major infrastructure upgrades. Tyler Cole also sheds light on the significance of Section 45Q of the US Tax Code, which offers tax credits for carbon management projects. TES actively engages with policymakers to enhance the value of CO2 utilisation, advocating for the CCU Parity Act to increase the value of utilisation to $85 per ton. While interest in CCUS projects is high, challenges such as lengthy permitting cycles and infrastructure gaps hinder implementation. TES works towards educating stakeholders on the benefits of CO2 utilisation compared to sequestration, emphasizing the need for clarity and guidance from policymakers to support the evolving CO2 market. TES encourages responsible scaling of the CCUS supply chain and calls for policymakers to address key issues like permitting, oversight, and environmental impacts. The company aims to collaborate with the industry to navigate the emerging disruptions in the CO2 market and ensure sustainable growth and development.
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