MOSCOW (
MRC) -- SHV Energy and UGI Receive European Union Approval to Create Joint Venture to Advance the Production and Use of Renewable Dimethyl Ether, said the company.
SHV Energy and UGI International, a subsidiary of UGI Corporation, distributors of off-grid energy, today received approval from the European Commission to create a joint venture to advance the production and use of renewable dimethyl ether (rDME).
The proposed joint venture was approved, marking an important step that will enable both parties to form the joint venture and commence operations in early 2022. As previously announced, the joint venture is intended to gain market acceptance and accelerate the use of rDME as a renewable solution for the LPG industry.
The parties anticipate the development of up to 6 production plants within the next 5 years, targeting a total production capacity of 300,000 tons of rDME per year by 2027. The aggregate investment in production capacity is estimated to be up to USD1 billion which is expected to involve third party investment.
In May 2021, SHV Energy and UGI International, a subsidiary of UGI Corporation, leading distributors of off-grid energy,
announce the intention to launch a joint venture to advance the production and use of Renewable Dimethyl Ether (“rDME”), a low-carbon sustainable liquid gas, to accelerate renewable solutions for the LPG industry.
SHV Energy, via its subsidiary Pinnacle Propane,
has acquired 100% of the assets and customers of United Propane and Collins Propane in the United States.
SHV Energy is a leading global distributor of off-grid energy such as LPG and LNG and is active in the area of sustainable fuels and renewable energy solutions. SHV Energy is a wholly owned subsidiary of SHV, a family-owned multinational, and consists of a group of specialized energy companies. The company’s brands include Calor, Ipragaz, Liquigas, Pinnacle, Primagas, Primagaz and Supergasbras.
MRC