Benzinga | Dec 22, 2021 04:16PM EST

SHV Energy and UGI Receive European Union Approval to Create Joint Venture to Advance the Production and Use of Renewable Dimethyl Ether

SHV Energy and UGI International, a subsidiary of UGI Corporation (NYSE:UGI), 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 $1 billion which is expected to involve third party investment.