European Energy, Petrobras plan e-methanol plant in Brazil

Denmark–based European Energy has partnered with Brazilian oil and gas major Petrobras to explore the possibility of building an e-methanol production plant in Brazil.

PHOTO: European Energy's solar park in Kasso, Denmark. European Energy

“This potential collaborative venture represents a significant stride towards the development of green e-fuels in Brazil,” European Energy said.

E-methanol, or synthetic methanol, is produced using 100% biogenic carbon dioxide (CO2) and green hydrogen. The biogenic CO2 is typically captured through either bioenergy with carbon capture and storage (BECCS) or through direct air capture (DAC).

This variant of methanol is virtually free of greenhouse gases and can cut a ship’s CO2 emissions by 95% compared to conventional marine fuels on a well-to-wake basis.

Currently, European Energy operates 187 megawatts (MW) of solar and wind energy plants in Brazil. It is also working on 1.5 gigawatts (GW) of projects across the country.

European Energy is also building a large-scale commercial e-methanol plant in Denmark, which is expected to produce 32,000 mt/year of e-methanol from 2024. Technical knowledge from this facility will be applied to the upcoming plant in Brazil, it said.

As of now, it has not disclosed the timeline or the planned capacity of the plant and has not confirmed whether the production from its Brazilian facility would meet maritime demands.

Meanwhile, European Energy has signed two separate agreements to supply e-methanol as a marine fuel from its Danish facility.

It has inked supply agreements with Danish and Korean shipping giants A.P. Moller–Maersk and Hyundai Merchant Marine (HMM) for e-methanol offtake from its Kassø project in Denmark, starting from 2024 and 2026, respectively. Maersk's order book has 25 methanol dual-fuel vessels, while HMM has ordered nine vessels.

Moreover, Japan's Mitsui & Co, the parent company of shipping giant Mitsui O.S.K. Lines (MOL), has acquired a large stake in the Danish facility. As of now, MOL has 23 methanol dual-fuel tankers in its order book.

By Konica Bhatt

Please get in touch with comments or additional info to news@engine.online