SHV Energy, UGI International launch joint venture to transition to sustainable future

SHV Energy and UGI International, a subsidiary of UGI Corporation, announced Tuesday that they will launch a joint venture to advance the production and use of Renewable Dimethyl Ether (rDME).

rDME is a sustainable liquid gas that is low-carbon and can be an alternative renewable solution for the LPG industry. The joint venture will work to develop the full potential of rDME as a sustainable solution.

The companies anticipate investing up to $1 billion to develop up to six production plants over the course of the next five years, with a total production capacity target of 300 kilotons of rDME per year by 2027.

“De-fossilization is pivotal for our industry. Liquid gas is an important, clean and efficient energy source used in over 1000 different applications by millions of people around the world. Finding accessible, sustainable, and affordable feedstock to produce alternative liquid renewable gas is a high priority for the LPG industry. We are convinced that rDME ticks all the boxes to be a gamechanger for our industry. We are excited to join forces with UGI to guide the LPG industry in this important transition,” Bram Gräber, Chief Executive Officer at SHV Energy, said. “We are ready to take up the responsibility to bring rDME to fruition, which will be to the benefit of the whole industry and its customers.”

Both parties will have an equal stake in the joint venture, which they hope will bring scale and critical mass to the rDME market by creating opportunities to invest in production capacity. Additionally, the companies said, the joint venture will promote the use of rDME by driving broader market acceptance, developing new rDME technologies, and supporting the development of infrastructure, regulations, and standards for rDME use in the off-grid energy sector.