Global distributor of off-grid energy SHV Energy BV, a wholly-owned subsidiary of the Netherlands-headed family-owned multinational SHV, and UGI International, a subsidiary of UGI Corporation (UGI), one of the world’s largest Liquefied Petroleum Gas (LPG) distributors have received approval from the European Commission (EC) to create a joint venture to advance the production and use of renewable dimethyl ether (rDME).
The proposed joint venture, announced in May 2021, has been approved by the Commission, marking an important step that will enable both parties to form the joint venture and commence operations in early 2022.
The proposed 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 six production plants within the next 5 years, targeting a total production capacity of 300 000 tonnes of rDME per year by 2027.
The aggregate investment in production capacity is estimated to be up to US$1 billion which is expected to involve third-party investment.
