By Brazil Stock Guide – Petrobras (PETR3; PETR4) and Finep have launched a R$30 million ($6 million) public call to fund research and development projects in biorefining, as part of a broader push into low-carbon fuels.
The initiative aims to accelerate technologies with industrial application and scaling potential, bringing together universities, startups and companies under a coordinated innovation framework. Total funding under the broader program could reach up to R$120 million over five years, signaling a structured effort to move beyond isolated research toward deployable solutions.
The focus is on biotechnological routes — processes that use microorganisms and enzymes to convert biomass into fuels. The strategy prioritizes alternative feedstocks such as industrial, agricultural and urban waste, in an attempt to diversify supply and reduce the carbon intensity of production.
The move reflects a growing structural challenge in the energy transition. Demand for advanced biofuels, particularly sustainable aviation fuel (SAF), is expected to rise sharply, while traditional feedstocks such as vegetable oils and animal fats face supply constraints. Petrobras is positioning the program as a way to unlock new input sources and improve long-term competitiveness.
Projects will be required to demonstrate technological maturity and a clear pathway to commercialization, with selection criteria focused on innovation, execution capacity and scalability. Proposals are open through May 29, with initial results expected in July.