RIO DE JANEIRO, Nov 22 - Brazilian state-run oil company Petrobras is engaged in discussions for a potential joint venture in ethanol production with Raizen, BP, and Inpasa, according to sources familiar with the matter. This initiative aligns with the company's broader strategy to enhance its renewable energy portfolio.
Petrobras' director of energy transition, Mauricio Tolmasquim, confirmed the company's interest in ethanol partnerships during a press conference. While specific partners were not disclosed, he indicated that Petrobras aims to invest approximately $2.2 billion in ethanol distilleries over the next five years.
Tolmasquim noted that the company has not yet determined whether to focus on ethanol derived from corn or sugarcane. He emphasized the importance of collaborating with established players in the industry to expedite the process of entering the ethanol market.
Petrobras CEO Magda Chambriard stated that the company remains committed to the ethanol sector, viewing it as a key competitor to gasoline, which is projected to lose market share. She highlighted that Petrobras has been meeting its capital expenditure and production targets since August, despite previously lowering its investment plans for the year.