Petrobras is advancing the energy transition through biofuel production

Continue investing in sustainable projects Petrobras PETR4 has announced a new strategic partnership before the lights go out in 2023. Last Saturday (30), the state-owned company signed a contract to import new technology to produce 100% renewable diesel (Croatian Defense Council) and aviation biokerosene, BioQav.

The company said in a statement that it will acquire HEFA technology (hydrolyzed esters and fatty acids, in free translation) from Honeywell UOP, one of the most recognized licensors worldwide in the field of production solutions. Biofuels.

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With this, Petrobras will be able to produce hydrogenated vegetable oils and sustainable aviation fuel (SAF) from renewable sources, e.g. Soy oil H Cebu Bovino. Strategic partnership is crucial to introduce new products and move towards a low carbon market.

“This initiative is a highlight of the BioRefino program and an important part of the company’s decarbonization plan.”

Marcela Ungaretti and Luisa Aguiar, ESG analysts at XP Investimentos, in a report.

Petrobras’ BioRefino program expects to invest US$1.5 billion in refineries to develop more efficient and sustainable fuels, while reducing greenhouse gas emissions. In total, the company’s strategic plan for 2024-2028 includes investments worth US$11.5 billion, with a focus on the energy transition.

Therefore, studies on the production of low-carbon projects will continue, says Petrobras. It is worth noting that in October Embraer EMBR3 has conducted flight tests of SAF-powered aircraft, highlighting the involvement of a large part of the industry to make the use of “green fuel” a commercially viable initiative.

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In a statement, Petrobras executives stressed that the initiative is in line with the requirements of society and the changing world, reconciling the production of petroleum derivatives with a low carbon footprint and the production of fuel with renewable content.

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In a report, analyst Daniel Cobucci, from BB Investimentos, points out that 2023 for Petrobras was marked by the entry of renewable energy (see below). Thus, he has already warned of the possibility of this happening New ads The company is in more projects related to renewable energy sources, with new acquisitions and strategic partnerships.

“We should also expect increased diversification of business lines to offer renewable energy-focused products, such as businesses in biomethane, SAF, E2G and biofuels.”

Daniel Cobucci, an analyst at BB Investimentos, said in a report.

In fact, Kobuchi points out that this is something that global companies in this sector have done for the energy transition. This is the situation ADNOCfrom the United Arab Emirates, and Aramco Saudi ArabiaFrom the Kingdom of Saudi Arabia, which has become an example of the “green agenda” in the Arab world, a giant of natural hydrocarbon reserves.

However, the BB Investimentos analyst warns that with the entry into the renewables sector, there may be a potential allocation of resources by Petrobras in projects with returns lower than the company’s cost of capital. According to him, this is one of the main risks regarding the prospects of the actions of the state-owned company in 2024.

For Cobuchi, this diversification path created by Petrobras is connected to him Energy transmission Should result in a lower level of earnings In the short term, after strong earnings in the third quarter. However, at the same time, it enables operations in sectors that should complement the portfolio for future orders.

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