European Energy and Petrobras signed an agreement to focus on developing a commercial scale green methanol production facility in the State of Pernambuco in Brazil.
European Energy and Petrobras, a key player in Brazil’s energy and Power-to-X sector, have taken a step toward advancing green methanol production with the signing of a Heads of Agreement. This collaboration focuses on developing a commercial-scale green methanol production plant in the State of Pernambuco, building on the Memorandum of Understanding (MoU) signed between the two companies in November 2023, European Energy said.
European Energy, recognized for its expertise in renewable energy, will bring invaluable knowledge from Denmark’s first large-scale commercial e-methanol facility, 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.
“As we spearhead the transition to a low carbon energy system, forming partnerships that deliver genuine impact is essential,” said Jaime Casasus-Bribian, Director and Head of Power-to-X projects in Americas, Iberia and Australia for European Energy.
“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.”
European Energy has been a key player in Brazil’s renewable energy landscape since 2016, with its headquarters in Recife, Pernambuco State. The company has extensive local expertise across development, construction, and operation of renewable energy assets, having connected 187 MW of solar and wind capacity to the national grid.
Further solidifying its commitment, European Energy has secured a 25-year land lease agreement with the Port of Suape for the proposed green methanol facility. This facility will be instrumental in supporting Brazil’s transition toward sustainable energy solutions, positioning Pernambuco as a leader in green technology.