Petrobras has approved a US$1.2 billion (approximately BRL 6 billion) investment in the RPBC Biorrefino project, establishing a new biofuel production hub in Cubatão, São Paulo.
The state-controlled oil company’s board of directors gave the final go-ahead on Friday, marking the first time the firm will operate a dedicated biorefinery facility.
The move signals a strategic pivot for Petrobras, which has historically focused on fossil fuel extraction and refining.
By entering the biofuel market with a dedicated industrial complex, the company aims to diversify its energy portfolio and align with Brazil’s growing renewable fuel mandates.
The Cubatão site, located in a key industrial region, will serve as the cornerstone of this new business line.
This development comes as global energy markets face shifting dynamics, with rising fuel costs in regions like California and renewed geopolitical shifts in energy trade, such as Mexico’s plan to restart oil shipments to Cuba.