Brazilian energy giant Petrobras and Danish company European Energy have further strengthened their partnership, focused on developing a commercial-scale green methanol production facility in Brazil, by signing a heads of agreement (HoA).
Building on the memorandum of understanding (MoU) signed between the companies in November 2023, the HoA entails collaboration on developing a green methanol production plant in the Brazilian state of Pernambuco.
For this project, European Energy intends to utilize knowledge gained from developing Denmark’s first large-scale commercial e-methanol facility, set to begin operations in 2024 and produce 32,000 tons of e-methanol annually for several major companies, including shipping giant Maersk .
In addition, European Energy said it had secured a 25-year land lease agreement with the Port of Suape for the proposed green methanol facility in Brazil. This facility is expected to be instrumental in supporting Brazil’s transition toward sustainable energy solutions, positioning Pernambuco as a leader in green technology.
“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, European Energy.
The signing of the HoA is also aligned with Petrobras’ Strategic Plan 2050 and Business Plan 2025-2029 (PN 2025-29), which aim to prepare Petrobras to reduce its emissions and expand the supply of more sustainable products.