Eletrobras and Suzano have agreed on a partnership to develop sustainable solutions, the Brazilian firms told Reuters on Thursday, including renewable hydrogen production and potentially building a synthetic fuels plant

Power giant Eletrobras and pulpmaker Suzano had been in talks for the partnership since last year and will now study the feasibility of making “green” fuel based on biogenic CO2, a by-product of Suzano’s pulp output, they said.

Generated from the burning of biomass and black liquor, biogenic CO2 can be captured and mixed with renewable hydrogen to produce synthetic fuels, according to the companies, which see “demand potential and scalability” for it.

One of the main solutions targeted by the firms is e-methanol, which is seen as a promising alternative for the decarbonization of the transport and logistics industries.

“E-methanol is one of the most likely candidates to replace fossil fuels in the maritime industry,” Suzano’s energy head Paulo Squariz said. “Its production would significantly contribute to the energy transition.”

Eletrobras, Latin America’s largest utility, has been increasing its focus on “green” solutions, seeking to take advantage of its huge hydroelectric assets to supply future green hydrogen projects with clean power at competitive prices.

The company earlier this month had already partnered with infrastructure firm Prumo to produce green hydrogen in a Rio de Janeiro port, after a similar deal with Green Energy Park (GEP) in northeastern Brazil.

Suzano is also a large generator of renewable energy from biomass, currently having an installed capacity of 1.3 gigawatt.