By Brazil Stock Guide – In an interview on Tuesday for Bloomberg, Magda Chambriard, CEO of Petrobras (PETR3, PETR4), outlined the company’s strategy for transitioning to renewable energy. She explained that Petrobras will prioritize biofuels, such as ethanol, co-processed diesel, biogas, and biodiesel, through 2035. After that, the company will shift its focus to solar, wind, and hydrogen energy.
Chambriard emphasized that Petrobras plans to invest $16.5 billion in renewable energy to align its energy transition with its continued production of fossil fuels. She highlighted a new refinery in Rio Grande do Sul, which will produce 100% renewable products, with no fossil molecules involved. Brazil’s energy matrix, currently 52% clean, is expected to reach 64% by the company’s target.
On the topic of co-processed diesel, which contains 5% to 10% vegetable oil, Chambriard noted that surplus grains in Brazil could accelerate the transition to biofuels, particularly if trade restrictions on grain exports are imposed. She also commented on the automotive sector, noting that hybrid vehicles will likely see higher demand in Brazil than fully electric cars. “Despite my fondness for fossil fuels, we’re not in denial. I believe hybrid vehicles will have strong demand in Brazil, delaying full electrification,” she said.