Brazil’s Petrobras may announce new partnership in ethanol business by end of this year
Petrobras will invest $2.2 billion in ethanol production through 2029, targeting 2 billion liters annually. Rather than building new plants, it will partner with major producers like Raízen, BP, and Inpasa. Ethanol, Brazil’s key alternative to gasoline, gains momentum amid supportive legislation. The move aligns with Petrobras’ broader renewable energy push, including wind, solar, and hydrogen
Brazilian state-run oil company Petrobras is making a significant move into the ethanol sector, a cornerstone of the country’s renewable energy strategy. On June 24, 2025, Petrobras executive William Nozaki confirmed the company plans to announce a new ethanol partnership by the end of the year.
This initiative is part of a broader strategy to invest $2.2 billion in ethanol production between 2025 and 2029. Petrobras intends to produce 2 billion liters of ethanol annually, using sugarcane and corn primarily.
Rather than building new plants independently, Petrobras is negotiating with major ethanol producers like Raízen, BP, and Inpasa. The company plans to combine its financial resources and infrastructure with these partners’ expertise and existing facilities, as per the local media reports.
CEO Magda Chambriard highlighted that ethanol is now the primary alternative to gasoline in Brazil, where gasoline sales are expected to decline as cleaner fuels gain popularity.
Recent legislation from the Brazilian government has strengthened support for biofuels such as ethanol, reinforcing their role in the country’s push for environmentally friendly energy solutions.
In addition to ethanol, Petrobras plans to invest in oil refining, exploration, fertilizer production, and renewable energy projects, including wind, solar, and hydrogen.
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Source : Chinimandi
