Wedoany.com Report-Nov 29,  Brazilian energy giant Petróleo Brasileiro S.A. (Petrobras) has signed a Heads of Agreement (HoA) with European Energy to partner on e-methanol. The company said in a media release that the HoA paves the way toward structuring a business partnership aimed at implementing a commercial-scale e-methanol plant in the state of Pernambuco.

E-methanol is a low-carbon solution that can be used in industrial processes or as fuel, especially in maritime transport, Petrobras said. It is produced by combining low-carbon hydrogen, obtained through water electrolysis using renewable energy sources such as solar and wind, with biogenic carbon dioxide, it said.

European Energy said in its media release that it has secured a 25-year land lease agreement with the Port of Suape for the proposed green methanol facility.

European Energy said it will bring 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, European Energy said.

“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 at European Energy.

European Energy has been active in Brazil’s renewable energy landscape since 2016, with its headquarters in Recife, Pernambuco State. The company said it has extensive local expertise across the development, construction, and operation of renewable energy assets, having connected 187 MW of solar and wind capacity to the national grid.

For its part, Petrobras said the HoA is aligned with its Strategic Plan 2050 and Business Plan 2025-2029, which aim to prepare Petrobras to lead a fair energy transition, reducing its emissions and expanding the supply of more sustainable products.

The establishment of business partnerships contributes to risk mitigation, strengthening of corporate governance, and sharing of information, experiences, and technology, Petrobras said.