Petrobras is betting on partnerships with giants such as Raízen, Inpasa and BP to consolidate its position in the ethanol sector. With a billion-dollar investment, the state-owned company seeks to lead the biofuels market, competing against gasoline with cleaner and more sustainable alternatives.
Petrobras, known as an oil giant, is preparing a bold new strategy that could also transform it into an ethanol powerhouse.
At a time when the world is looking for more sustainable alternatives, the company is approaching negotiations that promise to have an impact on the biofuels market.
However, this strategic change raises questions about the future of the company and the Brazilian energy market.
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According to InfoMoney portal, Reliable sources say that Petrobras is in talks with Raízen, Inpasa and even BP Bioenergy, seeking to create partnerships in the ethanol sector.
These joint ventures may include the ethanol production of sugarcane and corn, making Petrobras one of the leaders in a segment that is growing rapidly in Brazil.
This re-entry into the biofuels market is part of the company's business plan for 2025-2029, valued at an impressive $111 billion.
A giant returns to ethanol
In recent years, Petrobras has moved away from the ethanol sector to focus on high-yield pre-salt assets.
Now, with a planned investment of $2,2 billion in ethanol distilleries, the company is ready to regain its relevance in this market.
Magda Chambriard, president of Petrobras, emphasized that the objective is to achieve something “big, compatible with the size of Petrobras”.
The company has had partnerships in the past with groups such as São Martinho and Tereos, but chose to divest itself of these holdings.
The change in strategy reflects the need to compete with biofuel, which has been gaining market share over gasoline at the pumps.
Raízen and Inpasa: potential strong partners
Raízen, a joint venture between Cosan and shell, is the world's largest producer of sugarcane ethanol, while Inpasa stands out as the leader in corn ethanol in Brazil.
Both companies have characteristics that complement Petrobras' plans to dominate the market in different regions of the country.
BP Bioenergy is also on Petrobras’ radar. The British company, which recently acquired 50% of Bunge's stake in a joint venture, has established itself as one of the largest producers in the segment in Brazil.
Although Inpasa has not commented on the negotiations, market expectations are high regarding possible partnerships.
Corn ethanol in the Northeast: a new frontier
One of the most innovative aspects of this plan is the focus on promoting the production of corn ethanol in the Brazilian Northeast.
According to Mauricio Tolmasquim, director of Energy Transition and Sustainability at Petrobras, the objective is to invest in alternatives that are on the rise in the market.
“The idea is to start big, without starting from scratch. We are analyzing both sugarcane and corn ethanol, which has shown significant growth in Brazil,” Tolmasquim highlighted.
This approach reflects a strategic vision aligned with the expansion of the biofuels market in the country and worldwide.
Fuels and sustainability
Petrobras’ move is not just a market issue, but also a sustainability issue.
Ethanol is seen as a cleaner substitute for gasoline, helping to reduce carbon emissions. Furthermore, investing in this sector can diversify Brazil's energy matrix and create new economic opportunities.
According to experts, the competition between gasoline and ethanol at the pumps is getting fiercer.
Tolmasquim was direct in stating that “gasoline will lose market share to ethanol over time”, which makes it essential for Petrobras to be in the market of its main competitor.
What comes next?
The next steps involve defining partnerships and structuring joint ventures to begin investments.
Petrobras, however, is aware of the challenges and seeks business models that are economically viable and compatible with its long-term strategy.
With this strategic re-entry into the biofuels sector, will Petrobras be able to balance its position between oil and renewable energy?