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Petrobras Begins Conversion of Refinery Into Biorefinery With Focus on Renewable Fuels

Written by Sara Aquino
Published on 23/01/2026 at 00:11
Biorrefinaria da Petrobras vai transformar a Refinaria de Petróleo Riograndense em polo de combustíveis renováveis no RS.
Foto: IA
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Petrobras Biorrefinery Will Transform the Riograndense Oil Refinery into a Renewable Fuel Hub in RS.

The Petrobras Biorrefinery will come to life in the second half of this year and promises to mark a new chapter in the Brazilian energy industry.

The project provides for the complete conversion of the Riograndense Oil Refinery for the exclusive production of renewable fuels, with an investment of R$ 6 billion.

The announcement was made by the president of PetrobrasMagda Chambriard, this Tuesday (20), during an official event in Rio Grande do Sul.

The initiative takes place in Rio Grande (RS), where the refinery has been installed since 1937.

According to the executive, the conversion is part of the strategy to expand refining and reinforces the energy transition in Brazil, aligning the state company with global decarbonization goals.

The expectation is that the unit will be the first in the country to operate with 100% renewable products.

Petrobras Biorrefinery: When Construction Starts and Why the Project is Strategic

The work for the implementation of the Petrobras Biorrefinery is scheduled to begin in the second half of 2026.

According to Magda Chambriard, the schedule involves profound industrial adaptations necessary to replace traditional processes with sustainable technological pathways.

The decision comes as the demand for renewable fuels is growing rapidly, both in the domestic and foreign markets.

Thus, Petrobras aims to anticipate trends and ensure long-term competitiveness, reducing dependence on fossil derivatives.

Riograndense Oil Refinery Will Be the First 100% Renewable

The Riograndense Oil Refinery is a partnership formed by Petrobras, Braskem, and the Ultra Group.

With the conversion, the unit is expected to become the first integral biorrefinery in Brazil, operating exclusively with renewable raw materials.

Since the end of 2023, the plant has already been conducting industrial tests for the production of petrochemical inputs and renewable origin fuels, using technology developed by Petrobras itself.

These tests served as a technical basis for the decision to scale the project for commercial purposes.

Investment of R$ 6 Billion Strengthens the Energy Transition in Brazil

The investment of R$ 6 billion positions the biorrefinery as one of the largest green industrial projects underway in the country.

Moreover, the funding is expected to generate direct and indirect jobs, boosting the regional economy of southern Rio Grande do Sul.

According to Petrobras, the conversion of the refinery strengthens the energy transition in Brazil, allowing the production of fuels with a lower carbon footprint.

Therefore, the project meets both environmental criteria and the company’s business strategy.

Announcement Occurred During Transpetro Event

Magda Chambriard presented the details of the Petrobras Biorrefinery during a contract-signing event for Transpetro, the subsidiary responsible for the logistics and transportation of the state company. 

At the event, Transpetro announced the construction of 41 vessels, including five large gas carriers, with a total estimated investment of R$ 2.8 billion.

Although it is a distinct project, the initiative reinforces Petrobras’s plan for industrial and naval recovery.

Historic Refinery Undergoes Change in Production Profile

Founded in 1937, the Riograndense Oil Refinery has a long history in the fossil fuel sector.

Traditionally, the unit produces gasoline, diesel oil, petrochemical naphtha, fuel oil, and LPG, the kitchen gas.

Currently, the refinery has an installed capacity of 17,000 barrels per day and mainly serves the market in the southern region of Brazil.

With the conversion, this production profile will be completely changed, prioritizing renewable fuels and inputs with a lower environmental impact.

Petrobras Biorrefinery and the Future of National Refining

The investment in the Petrobras Biorrefinery signals a structural change in the Brazilian refining model.

Meanwhile, other units of the company are also evaluating co-processing and the use of renewable raw materials projects.

According to the state company, the experience of the Riograndense Oil Refinery will serve as a pilot project, allowing the replication of technological solutions in other plants in the future.

In this way, Brazil advances consistently in the energy transition, reconciling energy security, industrial innovation, and environmental commitment.

See more at: Conversion of Petrobras Refinery in RS into Biorrefinery Begins in the Second Half

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Sara Aquino

Farmacêutica e Redatora. Escrevo sobre Empregos, Geopolítica, Economia, Ciência, Tecnologia e Energia.

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