Petrobras also announced plans to convert the Riograndense Refinery into Brazil’s first biorrefinery, with an estimated R$6 billion investment commencing in the second half of 2026. This initiative aligns with broader governmental objectives to reduce carbon emissions and increase renewable energy production. President Luiz Inácio Lula da Silva emphasized Petrobras’ evolving role from a traditional oil company into a broader energy firm capable of contributing to Brazil’s energy sovereignty, advocating reduced dependency on foreign technology and imports.
The Brazilian energy matrix remains over 80% renewable in electricity generation, mainly hydro, wind, and solar, with 47.4% of total energy supply from renewable sources. However, experts highlight the need for expanded electrification and diversification amid global climate challenges. Parallel federal efforts include launching programs to accelerate the energy transition and negotiating international alliances for offshore wind development. These combined public and private sector movements are designed to sustain industrial growth while addressing environmental imperatives and economic expansion.
This article was curated and published as part of our South American energy market coverage.
