TES partners with E.ON and ENGIE to manage the 5 th Floating Storage Regasification Unit of Germany

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Berlin, 1 September, 2022 – Tree Energy Solutions (“TES”), E.ON and ENGIE are delighted to announce that they have been selected by the German Federal Ministry of Economics and Climate Protection (“BMWK”) to jointly develop and implement the fifth Floating Storage Regasification Unit (“FSRU”) in Germany.

The fifth FSRU in Germany, which is planning to start in the beginning of the heating period 2023, will have an annual importing capacity of about 5bcm (which covers about 5 % of the annual consumption in Germany) and will contribute to enhancing Europe’s and Germany’s energy security, accelerating its energy independence, and achieving full net zero by mid of the century.

Together, TES, a green hydrogen company building next-generation infrastructure to produce and import affordable green energy, E.ON, one of Europe’s largest operators of energy networks and provider of innovative customer solutions for more than 51 million customers, and Engie, a global leader in low-carbon energy, natural gas and LNG services with a strong footprint in Germany, have formed a partnership that will run the project showcasing strong European cooperation.

In Wilhelmshaven, TES is building the largest Green Energy Hub in Europe offering a unique model to convert large amounts of renewable electrons from sunny and windy locations into green hydrogen and affordable, renewable gas.

For this aim, TES and E.ON already signed an MoU on a strategic partnership end of March. The green hydrogen terminal in Wilhelmshaven will serve as the primary entry point for clean, safe, affordable and abundant sustainable energy in Europe, as well as a catalyst for a circular carbon economy.

TES will import green hydrogen from its upstream projects in the form of renewable LNG using green hydrogen and circular CO2. TES’s Wilhelmshaven hydrogen terminal, the development of which will be accelerated by the FSRU project, is flexible, modular and future-proof.

TES aims to seamlessly integrate the import of green molecules within the first 12 months that the FSRU is in operation in order to allow a fast and efficient green transition.

ENGIE is responsible for chartering of the FSRU on behalf of the BMWK, for part of its LNG supply, and with TES for the development and the operation of the FSRU. The five-year-chartered FSRU will be provided by Excelerate Energy, following negotiations led by Engie, and will be stationed in Wilhelmshaven, where TES already owns 145 hectares of land and has been developing the hydrogen terminal since 2019 to start large-scale imports by 2025.

Excelerate Energy is a U.S.-based LNG company and offers a full range of flexible regasification services from FSRU to infrastructure development to LNG supply. The FSRU will allow a seamless transition to green imports over the first period as the green terminal starts operation.

The TES terminal’s structure will ultimately include 6 ship berths, 2,000,000 cubic meters of onshore storage using 10 on-site tanks, and direct access to the natural gas, hydrogen, and CO2 pipeline networks required for decarbonization and true net zero energy supply.

TES is developing a diversified upstream green energy portfolio and accessing the best renewable locations to produce green hydrogen for imports beginning in 2025, for example, USA, Canada, South America, North and Southwest Africa, North Sea Region, Middle East and Australia. This will ensure an early and quick ramping green molecules supply on a large scale.

Federal Minister for Economic Affairs and Climate Protection, Robert Habeck said: “By importing liquefied natural gas, we are making ourselves less dependent on imports of Russian pipeline gas. And all steps that free us from the uncertainty of Russian imports as quickly as possible are more necessary than ever in these times. At the same time, we are accelerating the import of green hydrogen in parallel, making Wilhelmshaven an important landing point for safe and sustainable energy in Europe.”

Marco Alvera’, CEO of TES, said: “We’re looking forward to working closely with the Federal Government, European and local institutions as we take this great step to fast-track the development of a climate neutral, secure, and affordable hydrogen economy. Germany’s new FSRU will accelerate TES’s hydrogen strategy.

“Our new project will accelerate the development of Europe’s largest Green Energy Hub. Our unique model converts wind and sunshine into renewable, affordable, and secure natural gas using existing infrastructure to deliver green energy in Europe.”

Patrick Lammers, COO of E.ON, said: “We are pleased to contribute our extensive experience as a European energy supplier and operator of energy infrastructure. Through the project, we have the opportunity to help ensure energy security in the short term and to secure future access to green gases for our customers. Our goal is to support our customers in Germany and Europe in their green transformation and to meet the increased demand for green gases.

Manfred Schmitz, CEO Engie Deutschland AG, said: “We are pleased to be part of this partnership and to contribute our expertise in energy infrastructure and LNG. Together with our partners, we will contribute to securing gas supplies for Europe and Germany from the end of 2023”.