LNG open season at Wilhelmshaven Green Energy Hub shows strong market interest
Belgian hydrogen company Tree Energy Solutions (TES) has said that the open season raised strong market interest in its Wilhelmshaven Green Energy Hub in Germany.
On 25 April, TES announced the start of the open season to assess market interest for LNG import capacity at its Wilhelmshaven Green Energy Hub. On 13 June, the company said that the non-binding phase is concluded. In addition, bilateral discussions will start with all parties that expressed their interest.
The terminal at Wilhelmshaven will be incorporated separately and branded as the AvantHy terminal. It will offer the capacity to import green hydrogen and green gas over time, as well as the opportunity to support Germany’s energy security of supply by receiving LNG imports before switching to green gas. The planned start-up is in late 2025.
The terminal layout will include six ship berths, 2,000,000 cubic metres of onshore storage capacity using 10 onsite tanks, of which six will be available during the initial stage. The terminal will offer direct access to an extensive gas pipeline network. TES will further construct carbon export facilities as the Green Energy Hub will also be connected to OGE’s CO2 transportation network. Moreover, TES will also produce green hydrogen at Wilhelmshaven that will be transported through connections with the H2Ercules project that develops Germany’s hydrogen backbone.
TES offered a terminal capacity with base services of up to 20 bcm per annum; however, the company received expressions of interest from approximately 25 interested parties for more than twice the offered capacity.
The next phase of bi-lateral discussions is expected to be completed during July 2022.
Otto Waterlander, CCO at TES, said: “The positive market response to our open season is a reflection of the current challenging market conditions and the strong desire to open a direct route for Germany to alternative imports
. Our commercial proposition for conventional LNG attracted over 25 interested parties. Importantly, over 70 per cent of those, expressed interest in transitioning to green gas imports before 2043. This proves the TES value proposition to scale up green hydrogen-based gas imports for the German market.”
“With our open season,” Marco Alverà, CEO at TES, added: “We will be able to deliver sustainable and cost-effective energy that will have an immediate impact on Europe’s and Germany’s energy security of supply while reducing emissions and accelerating the transition to green hydrogen. This will greatly help industries continue to operate efficiently and meet their net-zero goals on time. Furthermore, the accelerated development of the Wilhelmshaven Green Energy Hub will generate a positive effect on the overall growth and development of the region, by stimulating the local economy and promoting environmental protection.”