TES teams up with Japanese equity fund to scale e-NG production

Tree Energy Solutions (TES), a Belgium-based producer of electric natural gas derived from green hydrogen (e-NG), and Advantage Partners (AP), a Japanese private equity fund, are in discussions to explore potential investments in TES’ e-NG projects.

Specifically, the collaboration envisages potential future capital investment by AP Group (AP Funds) into TES’ e-NG projects, including the company’s green energy hub in Wilhelmshaven, Germany. According to TES, the partnership will also advocate for increased awareness and investment in e-NG among AP Funds’ investor base.

To note, e-NG, also known as synthetic methane, is said to represent a renewable molecule that is easy to transport and store using existing natural gas infrastructure, allowing scalable and cost-effective solutions for heavy industries looking to reduce their carbon footprint.

Marco Alverá, CEO and Co-Founder of TES, commented: “By partnering with AP, we aim to mobilise fresh capital to support the scaling of e-NG production and infrastructure. Japan has taken a leadership role in recognising how clear public targets, such as gas blending mandates, combined with fresh capital, can accelerate the path to decarbonisation. This collaboration highlights the growing momentum behind green gases like e-NG as an immediate solution for reducing carbon emissions across industries.”

Richard Folsom, Co-Founder and Representative Partner of AP Group, stated: “AP supported the first closing of the Japan Hydrogen Fund and started its investment activities. e-NG is definitely a synthetic form of clean energy which can be utilized in the hydrogen value chain into Japan. The collaboration with TES opens the window for us to find the potential e-NG projects as well as other projects along its supply chain. We are happy to be in the position to collaborate with TES and contribute to the global decarbonization.”

In 2024, TES also partnered up with Japanese shipping company Kawasaki Kisen Kaisha (K Line) to accelerate the adoption of e-NG and “lead” the transition towards net-zero greenhouse gas emissions in the maritime sector by 2050.

In addition to commercial endeavours, technical collaboration is also on the agenda, encompassing the operation and management of e-NG carriers and liquified CO2 carriers and exchanging information relating to CO2 capture and utilization onboard vessels.