Berlin (energate) - The 'Green Energy Hub' in Wilhelmshaven for the import of hydrogen and green methane will be larger than previously planned. By participating in the federally chartered regasification unit (FSRU), the port expansion can be accelerated considerably, explained Jens Schmidt, chief technology officer of Tree Energy Solutions (TES), in an interview with energate. "Originally, the terminal was planned to start as a small import terminal for green gas from 2027," Schmidt said. Through its
participation in the federal FSRU, TES can now import green LNG as early as October 2023.
The basic idea of TES is a circular economy for green hydrogen. This is to be produced where renewable energies are cheaply available. In a Sabatier process, the hydrogen is then converted with CO2 into green methane (eNG) and liquefied into LNG. This can be transported to the centres of consumption using existing LNG technology. There, the gas is then either used directly and the CO2 produced is captured or split back into H2 and CO2. The CO2 is then brought back to the eNG production sites by ship.
Acceleration by the federal government
The Russian attack on Ukraine has given the project a big boost. "The acceleration is happening because the government has said that the terminal can be built on a larger scale from the start," Schmidt explained.
Up to 20 million tonnes of LNG and eNG are now planned in the final expansion. TES wants to complete the first expansion stage by 2026. Then the first production plant is also to start operating in the USA and green gas deliveries are to begin. By 2030, TES wants to increase annual deliveries to 5 million tonnes.
Surplus capacity that TES itself cannot yet use can be used by others to import LNG, while TES increases imports of green gas over time. For TES, Wilhelmshaven is the first access to the consumer market, Schmidt emphasised. Therefore, the FSRU and the possibility to start imports earlier is interesting for TES, he continued. "We hesitated for a long time whether we should participate in this as a green company."
Large-scale investments
Behind TES is the Belgian investment company Atlasinvest. Even though the investment decision for the 'Green Energy Hub' has not yet been made, the company does not shy away from large-scale investments. The hub itself requires investments of 3 billion euros, Schmidt commented. Each upstream block with a capacity of typically 1 GW would cost 3 to 7 billion euros, depending on its size and whether generation is included, he stressed. "To utilise Wilhelmshaven to capacity, we need over 100 GW of electrolysis." Next year, the investment decisions for three units are to be made first, followed by a phase of stabilisation in which, with the help of standardisation and efficiency improvements, capital costs will be reduced as much as possible and "we can always build with new partners".
Schmidt rules out the possibility that the project could fail due to lack of
demand. The biggest risk in Germany, according to him, is regulation, especially the recognition of CO2 reduction. "But that will not upset TES, then we'll just go into other markets." /hl/tc
Read the full interview with Jens Schmidt in the current issue of energate gas market.
