RIO DE JANEIRO AND SAO PAULO (Reuters) – Petrobras (PETR3;PETR4) has begun divesting in offshore wind and solar PV generation and will build its portfolio mainly through new “greenfield” projects in the country, its CEO said. Director of Energy Transition and Sustainability Mauricio Tolmaskem in an interview with Reuters
This marks a change in position for the oil company, which said last year it was in talks with companies to evaluate projects abroad in sectors such as offshore wind, even as a means of gaining “knowledge”.
“(Investment abroad) has been ruled out, because Petrobras is a Brazilian company and we have a very good amount of natural resources in Brazil,” he added. “We know Brazil and we know how to work in Brazil, so there is no need to travel abroad,” Tolmaskem said.
The focus on building renewable energy projects in Brazil fulfills the desires of the federal government for the company, whose management, which took office after the election of President Luiz Inacio Lula da Silva, seeks to combine local job generation with a leadership role. In the process of Brazilian energy transition.
In total, Petrobras plans to invest more than $5 billion in wind and solar power generation by 2028, with investments in low-carbon projects starting to gain momentum from next year, as expected in the new strategic plan published at the end of 2023.
Last year, Tolmaschem said Petrobras was talking to companies abroad, especially oil companies, to evaluate projects, which would be “a way to quickly add some projects” to its portfolio in sectors for which Brazil does not yet have one. Domain.
But the previous position raised questions among the wings of the Workers’ Party, who even indicated dissatisfaction with Petrobras’ management.
Continues after ad
When asked whether the change in direction was aimed at meeting government demands, Tolmaskem noted that this was the company’s own conclusion.
“Before we were a bit afraid because there was no prospect of a regulatory framework for offshore wind in Brazil, but now that there has been so much progress in Congress… there is no reason for us to go abroad,” he said. .
Petrobras submitted its first studies for offshore wind projects last year, in a portfolio totaling about 30 gigawatts on the Brazilian coast, including its own projects and in partnership with Norwegian company Equinor.
Tolmaskem stated that Petrobras’ expectations are that the Brazilian government will be able to hold an auction of offshore areas for investment in offshore wind farms later this year, after approval of the regulatory framework awaiting consideration by the Senate.
He stressed: “We are conducting studies on offshore wind energy, and we will enter it specifically when it proves profitable, and of course when it has an approved regulatory framework.”
Access to renewable energy sources
Tolmaschem noted that Petrobras will make its first investments in the renewable energy sector in onshore wind and solar projects, as the industry is already well established in Brazil, with positive returns.
He added that the oil company’s renewable energy portfolio should consist of 80% of “new” projects that may be in the initial stages or developed from scratch, and 20% of projects already operating.
Much of the initiative should also be implemented in partnership with other companies. “We aim for a maximum of 50% for most projects… It’s a way to give more flexibility, because it doesn’t describe it as a state-owned company.”
He avoided going into details about the projects under consideration, but did not rule out announcing something later this year: “Everything will depend on the opportunities we analyze.”
The Petrobras investments, which mark the oil company’s return to the renewable energy market, are being planned at a time when Brazil is experiencing a scenario of increased electricity supply, while large offshore wind projects are being canceled abroad, amid declining economic attractiveness.
Tolmaskem said he believes Brazil’s energy demand will grow in the coming years, driven by the energy transition itself, which is driving the electrification of transportation.
The company is also working on several fronts to promote low-carbon investments. Among them, the company is evaluating the production of green hydrogen in Brazil, a fuel that the company expects to be competitive in Brazil in 2030.
Tolmaskem noted that he had previously expected that green hydrogen would be produced for export, but now he sees domestic demand for this fuel with great potential for its attractiveness.
“Today I already see that the domestic market is the main market for hydrogen produced here in Brazil. “This has not been the vision for some time, but there are increasing signs that we (Brazil) will become fully competitive (in hydrogen production),” the CEO said. , recalling that the company has studies to develop fuel projects alongside companies such as Vale Mining Company (VALE3).
