Itochu and Tree Energy Solutions Partner to Scale Up E-NG Production

Itochu and Tree Energy Solutions Partner to Scale Up E-NG Production

Lukas Schmidt
2 min read

Tree Energy Solutions (TES) and Itochu Corporation Partner to Advance e-NG Adoption for Decarbonization

Tree Energy Solutions (TES) have entered a strategic partnership with Itochu Corporation, aiming to promote the use of e-NG, a sustainable gas composed of green hydrogen and recycled CO2, within hard-to-decarbonize industries. The collaboration involves potential equity investments, establishment of e-NG production facilities, and regulatory advocacy in prominent markets such as North America, Europe, and Japan. Additionally, Itochu, with a target of reducing greenhouse gas emissions by 40% by 2030 and achieving net zero emissions by 2050, considers this collaboration a pivotal step toward their sustainability goals. Furthermore, the partnership intends to distribute e-NG to Japan while also exploring the utilization of CO2 from North American industries to bolster e-NG production. TES CEO Marco Alverà perceives this venture as essential for penetrating the Japanese market and expanding the global e-NG supply chain. Daisuke Inoue from Itochu expresses excitement about the potential for substantial environmental advancement and scaling up e-NG production through this partnership.

Key Takeaways

  • TES collaborates with Itochu to expedite e-NG implementation for decarbonization.
  • The partnership encompasses equity investments and initiatives for e-NG production.
  • Itochu aims for a 40% reduction in GHG emissions by 2030 and achieving net zero by 2050.
  • The collaboration targets the supply of e-NG to Japan and North America.
  • TES regards Japan as pivotal for the expansion of the e-NG market.


The collaboration between TES and Itochu accelerates the deployment of e-NG, particularly impacting hard-to-decarbonize sectors on a global scale. This partnership is driven by Itochu's emission reduction objectives and TES's strategy for market expansion. In the short term, the effects will include escalated e-NG production and advocacy for regulatory support in key markets. Over the long term, this collaboration has the potential to reshape energy supply chains, leading to reduced emissions and fostering innovation. Furthermore, significant shifts are anticipated in financial instruments associated with both companies and industries heavily reliant on fossil fuels.

Did You Know?

  • e-NG (Electro-Natural Gas):
    • Explanation: e-NG is an eco-friendly gas amalgam primarily comprising green hydrogen and recycled CO2. This innovative fuel is designed to replace traditional natural gas in various industrial applications, particularly targeting sectors encountering difficulties in the decarbonization process. By integrating green hydrogen, produced through renewable energy means, and incorporating recycled CO2, e-NG markedly reduces the carbon footprint when compared to conventional fossil fuels.
  • Green Hydrogen:
    • Explanation: Green hydrogen is a form of hydrogen generated via the electrolysis of water, utilizing renewable energy sources such as wind or solar power. In contrast to gray hydrogen, which is produced using fossil fuels and contributes to carbon emissions, green hydrogen serves as a clean energy carrier with zero carbon emissions. It is considered a vital component in transitioning to a low-carbon economy, especially within hard-to-decarbonize industries.
  • Hard-to-Decarbonize Industries:
    • Explanation: These industries encounter significant challenges in reducing their greenhouse gas emissions due to the nature of their processes or the high temperatures and pressures required for their operations. Examples include steel production, cement manufacturing, and certain chemical processes. These sectors heavily rely on fossil fuels for energy and raw materials, making conventional methods of achieving substantial carbon emission reductions quite challenging. Innovative solutions like e-NG play a pivotal role in enabling these industries to transition towards sustainability.

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