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Brazil and Saudi Arabia Strike Agreement That Promises to Change the Course of Renewable Energy in Both Countries. In Total, Brazil Will Receive Investments of US$ 10 Billion.
The Minister of Mines and Energy, Alexandre Silveira, recently signed a memorandum of understanding with the Ministry of Energy of Saudi Arabia. The countries will work together focusing on oil and gas exploration as well as renewable energy development.
Agreement with Saudi Arabia Incentivizes Joint Studies
According to Silveira, investments will be attracted to the country, promoting economic and social development in Brazil, generating jobs, income, and combating inequalities. The document covers areas such as oil, gas, renewable energy, electricity, energy efficiency, petrochemicals, green hydrogen, in addition to Carbon Circular Economy.
The agreement encourages joint studies at universities and research centers in the energy field and partnerships with specialized companies to locate materials, products, and services. It is worth noting that on the first day of his visit to Middle Eastern countries, President Luiz Inácio Lula da Silva met with the Crown Prince and the Prime Minister of Saudi Arabia, Mohammed bin Salman. The two discussed the consolidation of bilateral relations, investments in both directions for Brazilian and Saudi companies.
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One of the points of discussion was the investment of US$ 10 billion that the Saudi Sovereign Fund plans to invest in Brazil. Of this total, US$ 9 billion is earmarked for the next seven years. Among the possibilities are projects in the renewable energy sector, green hydrogen, science and technology, agriculture, defense, and investments in infrastructure connected to the New PAC.
During the meeting in Riyadh, the Saudi capital, President Lula mentioned Brazil’s approach to Arab countries and highlighted Brazil’s potential for energy transition and actions to combat the climate crisis. He informed the prince that the country would present at the COP-28, in Dubai, advances in controlling deforestation and actions related to the preservation and protection of tropical forests.
Brazil and Saudi Arabia Are Leaders in Their Regions
Saudi Arabia has sustainability goals that involve producing 90 GW of clean energy by 2030, both within and outside the country. Brazil is one of the countries with the highest potential to receive investments for this purpose, particularly in renewable energies like green hydrogen.
Mohammed Bin Salman emphasized the position of Brazil and Saudi Arabia as economic leaders in their respective regions and indicated that this is a sign that a stronger and more strategic partnership in renewable energy between the two countries would be beneficial for all parties.
The two leaders project that trade transactions between the two countries, which have already lasted 50 years, could jump from the current US$ 8 billion to US$ 20 billion by 2030.
Crown Prince of Saudi Arabia Also Demonstrates Interest in Visiting Brazil
They talked about Brazil’s international presidential prominence. The crown prince mentioned the strategic importance of Brazil’s G-20 presidency, which started in December.
Mohammed bin Salman also highlighted Saudi Arabia’s entry into BRICS, stating that the country is interested in having an active role in the bloc’s bank, the NDB. Invited by President Lula, the Saudi leader also expressed interest in visiting Brazil and specifically learning about the Amazon.
He referred to Brazil as a peaceful country with highly appreciated cultural expressions, as well as football. Both leaders and their respective delegations also expressed interest in developing a bilateral Council at the ministerial level, which would meet periodically to promote the deepening of economic and political relations between the two countries, a theme also mentioned by Minister Rui Costa in contact with the Brazilian press present in the Arab country on the morning of last Tuesday.
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