Japanese private equity fund Advantage Partners (AP) is in talks with Tree Energy Solutions (TES) to explore potential investments into the European firm’s green hydrogen-based electric natural gas (e-NG) efforts.
The fund plans to provide capital investments to TES for its e-NG projects using AP Funds, while also working with TES to “advocate for increased awareness and investment in e-NG among AP Funds’ investor base.”
e-NG, or synthetic methane, is chemically identical to natural gas. Produced by combining green hydrogen with captured carbon dioxide (CO2), the gas can be used in existing natural gas infrastructure.
TES has bold plans to produce one million tonnes of e-NG by 2030, with projects planned in Germany, Canada and the US.
The firm has also been stepping up its Japanese operations, having launched partnerships with Osaka Gas, Tokyo Gas and Saibu Gas to explore the potential of the cleaner gas.
“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,” said TES co-founder and CEO, Marco Alverá.
“By partnering with AP, we aim to mobilise fresh capital to support the scaling of e-NG production and infrastructure.”
AP already has over $5bn invested, and in collaboration with the Japan Hydrogen Association, launched the $400m Japan Hydrogen Fund in September.
Read more: $400m Japan Hydrogen Fund launched with industrial and financial major backing
AP co-founder and Representative Partner, said, “e-NG is definitely a synthetic form of clean energy which can be utilised 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 the supply chain.”
