TotalEnergies is teaming up with Belgium’s Tree Energy Solutions (TES) to develop a synthetic natural gas plant in the US. The project, which was announced on May 31, will see the French energy major provide two gigawatts of wind and solar power to produce renewable hydrogen. This, in turn, will be combined with carbon dioxide to obtain ‘e-NG’.

Green hydrogen specialist TES expects the plant, which is valued at $2bn according to the Financial Times, to benefit from tax credits under the US Inflation Reduction Act (IRA). “This groundbreaking project testifies to the effectiveness of the IRA,” its CEO, Marco Alverà, said in a statement.

The plant will produce up to 200,000 metric tons of e-NG per year which can be transported, liquified, sold and consumed using existing natural gas infrastructure. A final investment decision is expected in 2024.

Toyota investing $2.1bn North Carolina

Automaker Toyota is investing another $2.1bn in its US battery plant under construction in North Carolina. This brings the Japan-headquartered firm’s total investment in the facility, which has been under construction in the town of Liberty since 2021, to $5.9bn.

It will produce six types of lithium-ion batteries which will supply Toyota’s manufacturing plant in Georgetown, Kentucky. Announcing the news on May 31, Toyota also confirmed that its first US-assembled battery electric vehicle will roll off production lines at the Kentucky plant in 2025.

Asian and African M&A hit by FDI scrutiny

Regulatory scrutiny of foreign direct investment (FDI) is set to be the biggest dampener of mergers and acquisitions (M&A) in Asia and Africa this year, according to a survey of 200 multinational executives. 

The study by law firm Norton Rose Fulbright and Mergermarket, which was published on May 31, found that 65% of respondents expect FDI regulations to be among the top two factors holding back M&A in Asia this year. In Africa, that figure is 64%. National security regulations were cited as the next worst dampener in Asia and Africa by 43% and 50% of respondents, respectively. 

More broadly, 56% of respondents expect their appetite for M&A to increase this year and 59% say that international private equity firms will be among the top-two most active buyers. 

And finally: Savannah Resources announced on May 31 that its Barroso lithium project in Portugal, which promises to be one of Europe’s first large-scale mines for the critical mineral, has been approved by environmental regulators.