To support this, Petrobras is advancing the construction of Brazil’s first 100% biorefinery in the southern state of Rio Grande do Sul, targeting increased volume and scalability. Current production at Petrobras’ Presidente Bernardes refinery in Cubatão reaches up to 60 million liters but depends on partner demand. The enhanced 20% renewable content diesel requires higher hydrogen input during hydroprocessing and presents greater operational instability risks, such as gum formation, demanding sophisticated technical management.
Economically, biodiesel prices close to fossil diesel narrow profit margins, pressuring competitiveness, which makes cost-effective scaling critical. Regulatory frameworks lag behind technology, with recent legislative developments excluding coprocessed diesel from mandatory renewable blending targets, limiting market expansion and potential credits for carbon reductions (CBios). Petrobras continues advocating for regulatory recognition to facilitate broader commercialization.
Petrobras maintains its strategic focus on molecule-based fuels, particularly liquid biofuels, for the near and mid-term. Alongside diesel coprocessing, it plans to expand biodiesel and sustainable aviation fuel (SAF) production. Its new business plan (2025–2029) allocates significant capital to refining, biofuel development, and low-carbon energy, evidencing a dual approach balancing fossil production growth with renewable integration to meet Brazil’s evolving energy demands through 2050.
This article was curated and published as part of our South American energy market coverage.
