European Energy has signed a memorandum of understanding with Petrobras to explore commercial opportunities for the development of an e-methanol production facility in Brazil.
The agreement was formalised following the visit of Petrobras senior management, to European Energy’s headquarters in Søborg, Denmark.
This potential collaborative venture represents a significant stride towards the development of green e-fuels in Brazil.
European Energy has connected 187MW of solar and wind energy to the Brazilian national grid and possesses a development pipeline of 1.5GW across the country.
Emil Vikjær-Andresen, executive vice president and head of power-to-X at European Energy, said: “We have, in the development and construction phase of our Kassø-project, gained invaluable experience and knowledge in the field of producing e-methanol.
“This agreement with Petrobras – the leading fuel company in Brazil – is a milestone for us to use that know-how in furthering the green transition in the fuel sector in the country.”
The two parties will assess several development workstreams necessary to evaluate the implementation an e-methanol facility in Brazil by leveraging their respective competencies.
Workstreams include a holistic assessment of all value-chain as well as adherence to the national regulatory framework.
European Energy is currently constructing the world’s first large-scale commercial e-methanol facility in Kassø, Denmark.
The facility is expected to produce 32,000 tonnes of e-methanol annually in 2024.
Among the current offtakers for the e-methanol are A.P. Moller – Maersk, Novo Nordisk and the LEGO Group.