RIO DE JANEIRO — European ship recycling company M.A.R.S. Europe A/S, a subsidiary of M.A.R.S. Inc., has signed a new Memorandum of Understanding (MoU) with Porto Central, advancing plans to establish a world-class shipyard dedicated to dismantling and recycling oil platforms and vessels in Presidente Kennedy, Espírito Santo, Brazil.

The agreement, signed during the Offshore Technology Conference (OTC) Brazil 2025, represents a major step in the ongoing collaboration between the two companies. It follows an earlier feasibility study conducted in May 2024, which confirmed the viability of building the facility in the new port area currently under construction in southern Espírito Santo.

Under the new MoU, M.A.R.S. Europe and Porto Central will invest in detailed engineering, safety, and economic viability assessments to determine the project’s technical feasibility. These additional studies are expected to be completed by 2026, providing the basis for a final investment decision on whether to move forward with construction.

M.A.R.S. Europe CEO Kim Thygesen stated that the project aligns with the company’s goal of introducing sustainable decommissioning practices in Brazil’s offshore industry.

“This extension reflects our mutual dedication to boosting Brazil’s offshore industry, promoting sustainable decommissioning practices, and fostering regional economic growth. Recognizing the current pressures on ports due to new construction and maintenance plans, we are committed to jointly developing a facility dedicated to ship dismantling and recycling, similar to Denmark’s successful model,” Thygesen said.

The initiative aims to relieve congestion in existing Brazilian ports and create a specialized industrial hub for dismantling and recycling offshore assets, similar to Denmark’s successful model.

According to Porto Central, the partnership is strategic in positioning Brazil as a global benchmark hub for sustainable offshore asset management.