Belgium-based Tree Energy Solutions (TES), developer of an LNG and hydrogen hub in Wilhelmshaven, said that about 25 parties have shown interest in booking capacity at the planned hub following a non-binding expression of interest.
TES launched the open season on April 25 to fast-track LNG imports into Germany, as the country looks to slash reliance on Russian gas supplies.
After that, the project was also included in the list of priority projects supported by the German government’s new LNG law.
Huge interest
The non-binding phase has now concluded, and TES would now start bilateral discussions with all parties that expressed their interest in booking capacity, it said in a statement on Monday.
TES said it has offered a terminal capacity with base services of up to 20 bcm per year.
However, the company received expressions of interest from about 25 interested parties for more than twice the offered capacity, it said.
The firm expects to complete talks with interested parties during July 2022.
According to statement, 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.
TES expects to launch the facility in late 2025.
From LNG to hydrogen
Otto Waterlander, CC0 at TES, said in the statement that the, “positive market response to company’s 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.”
He said that the company’s commercial proposition for conventional liquified natural gas attracted over 25 interested parties.
“Importantly, over 70 percent 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,” Waterlander said.
Germany currently has no LNG import facilities but it has recently chartered four FSRUs to start importing LNG.
These include the two units RWE chartered from Hoegh LNG, and the Dynagas-owned 174,000-cbm Transgas Force and Transgas Power that will go on charter to Uniper.
Uniper also started building the first German import terminal in Wilhelmshaven and this facility will host one of the chartered FSRUs.
Besides these four units, German energy firm E.ON recently told LNG Prime that it had joined forces with TES and France’s Engie to deploy another FSRU in Germany.
The partners are planning to install the FSRU in Wilhelmshaven on Germany’s North Sea coast, where TES is planning to build the LNG and hydrogen hub.