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5/17/2022

Dimeta announces location of its first commercial-scale rDME production plant

Pictured, from left to right:
James Barrett-Miles, Commercial Director, Circular Fuels Limited; Tim Sutherland, Head of Projects Development - UK, Circular Fuels Limited; Gillian Baker, Commercial Development Manager, UGI International; Neil Murphy, Vice President for Business Development, UGI International and Dimeta board member; Søren Jacobsen, CEO, Dimeta; Ben Houchen, Tees Valley Mayor; Rebecca Groen, Director of Sustainable Fuels, SHVE and Dimeta board member; Dr Kamal Kalsi, CEO, KEW Technology; Amna Bezanty, Commercial Manager, Circular Fuels Limited; and Matt Johnson, Development Director, Teesworks.
Dimeta B.V., the joint venture of SHV Energy and UGI International, announced that it intends to locate its first commercial-scale renewable dimethyl ether (rDME) production plant at Teesworks in the UK.

The news marks a big step forward for Dimeta on its commitment to bring rDME to Europe and the United States by 2024.

“We are thrilled to announce Teesworks as the intended site for our first industrial-scale rDME production facility,” said Søren Jacobsen, Dimeta CEO. “The strong strategic alignment between the Teesworks management team, Dimeta, and LPG industry stakeholders has been crucial to the plant development so far.”

rDME, which is in advanced stages of production, is an affordable drop-in fuel that can be safely blended into LPG and bioLPG with no change to existing infrastructure. It can also be used as a 100% replacement for more polluting fuels, such as coal and heating oil. Dimeta will supply rDME at commercial scale from its Teesworks plant as a high-value, efficient alternative fuel for individuals and businesses.

“There is an urgent need to bring rapid and affordable low-carbon heating solutions to more than a million households and businesses in the UK that are not connected to the natural gas grid. The use of non-recyclable waste will reduce the UK’s reliance on imported fossil fuels and enable off-grid heating customers to lower their greenhouse gas emissions,” said Jacobsen.

Dimeta plans to produce 50,000 tonnes of rDME each year at the Teesworks production facility. The Teesside area is one of the UK’s leading industrial clusters for de-fossilisation. Once the plans are approved, the plant will bring additional investment and employment opportunities to the local area. Dimeta expects to create more than 250 new jobs during construction and more than 50 skilled full-time jobs during the operational phase, expected by the middle of 2024.

This crucial first step is part of a plan to introduce a viable, new renewable product to the off-grid energy market, starting in the UK. Dimeta will introduce the first commercial molecules of rDME into the market later this year. KEW Technology is the provider of gasification technology to the first commercial rDME plant and a partner in its development.

About Dimeta

Dimeta is a Joint Venture between SHV Energy and UGI International that aims to bring scale and critical mass to the rDME market by developing the market for rDME and opportunities to create production capacity. Dimeta will offtake all rDME produced in the first production plant, with the majority provided to the JV partners SHVE and UGI International, and at least 20% made available to other LPG retailers to advance the de-fossilisation of the entire LPG industry.