TotalEnergies, Tree Energy, and a consortium of Japanese firms are partnering to develop a synthetic LNG project in the United States, aiming to supply low-carbon fuel to global markets. The collaboration, announced today, will leverage renewable energy sources to produce synthetic methane, wich is chemically identical to natural gas but created without fossil fuels.
This venture addresses the growing demand for cleaner energy alternatives, particularly in Asia, where LNG imports are crucial for power generation. The project seeks to decarbonize the LNG supply chain and provide a lasting fuel source as countries strive to meet climate goals. Initial output is targeted for the mid-2030s, with the US Gulf Coast identified as a potential location.
TotalEnergies will contribute its expertise in LNG trading and project progress, while Tree Energy will provide its “solar Wind to Gas” technology, converting renewable power into synthetic methane.The japanese partners - including Kansai Electric Power, Osaka Gas, and Toppan Energy – will secure offtake agreements and contribute to project financing.
“This collaboration represents a significant step towards decarbonizing the LNG market,” said Marco Alverà,CEO of Tree Energy. “By combining our technology with TotalEnergies’ global reach and the Japanese partners’ commitment, we can deliver a sustainable energy solution at scale.”
The project will initially focus on producing approximately 0.5 million tonnes per annum (mtpa) of synthetic LNG, with plans to scale up production as renewable energy capacity increases. The synthetic methane will be created by combining captured carbon dioxide with hydrogen produced from renewable electricity via electrolysis.
The partnership underscores a broader trend of energy companies investing in synthetic fuels as a pathway to net-zero emissions. While still in its early stages, synthetic LNG holds the potential to significantly reduce the carbon footprint of the global energy system.
