European Energy and Petrobras have signed a Heads of Agreement that focuses on developing a commercial-scale green methanol production plant in the State of Pernambuco.
The agreement builds on the Memorandum of Understanding (MoU) signed between the two companies in November 2023.
In a statement issued yesterday (28 November), European Energy also announced it has secured a 25-year land lease agreement with the Port of Suape for the proposed green methanol facility.
The company, which has had an office in Recife, Pernambuco State, since 2016, said it would bring its experience from Denmark’s first large-scale commercial e-methanol facility, which is set to begin operations in 2024. The Danish facility is projected to produce 32,000 tons of e-methanol annually, supported by off-take agreements with several major companies including A.P. Moller – Maersk.
‘The partnership with Petrobras is important for our work in Brazil, which is a key market for us. The abundant resources of the country and the geographic location makes it an ideal hub for green methanol production,’ said Thiago Arruda, Vice President for Latin America.
Jaime Casasus-Bribian, Director and Head of Power-to-X projects in Americas, Iberia and Australia for European Energy,’ added: ‘As we spearhead the transition to a low carbon energy system, forming partnerships that deliver genuine impact is essential.
‘Our partnership with Petrobras is a mutual dedication to a sustainable future. By combining our strengths and innovating together, we are positioning ourselves as frontrunners in the decarbonisation of the hard-to-abate industry sectors.’
