Petrobras launches first large-scale test of sustainable aviation fuel

<p>State-run oil major makes Brazil’s first large-scale SAF batch.</p>

By Brazil Stock Guide – Petrobras (PETR4.SA) has produced Brazil’s first batch of sustainable aviation fuel (SAF) at industrial scale, according to the Ministry of Ports and Airports on Monday. The test run took place at the Henrique Lage refinery in São José dos Campos, which accounts for about half of the nation’s jet fuel output.

The process integrated vegetable oil into the traditional refining stream, reaching a renewable share of up to 1.2%. “Although apparently small, this percentage represents a significant reduction in the carbon footprint of the final fuel. It is a lower-investment route because it leverages existing refinery assets,” said Alexandre Coelho, general manager of the plant, in a ministry statement.

Located near São Paulo’s Guarulhos International Airport, the refinery gives Petrobras a logistical edge in supplying the country’s busiest hub. The state-controlled company is now preparing a technical report to submit to the National Agency for Petroleum, Natural Gas and Biofuels (ANP) and will hire a certifier to validate the emissions cut.

Ports and Airports Minister Silvio Costa Filho said President Luiz Inácio Lula da Silva’s government is committed to creating regulatory stability and international competitiveness. “Our role is to create conditions for this sustainable fuel to gain scale, with regulatory security and international competitiveness,” he said.

SAF is produced from renewable feedstocks such as vegetable oils, fatty waste and ethanol. Chemically identical to conventional jet fuel, it can be blended without modifying aircraft engines or airport infrastructure. The Brazilian government views SAF as a central tool to decarbonize aviation.

The move aligns with the International Civil Aviation Organization’s Corsia program, which targets carbon neutrality for global aviation by 2050. Regulators including Brazil’s ANAC will oversee compliance with international standards as well as the nation’s “Fuel of the Future” law, which mandates gradual adoption of SAF starting in 2027.


Clear insights on Brazilian equities

Join portfolio managers and investors who get our curated analysis on Latin America’s largest economy.

Advertisement