Sept 17, 2020
Petrobras is interested in investing in renewable energies, but while other oil companies already have more defined plans for this sector, the Brazilian state-owned company is still looking for a way to enter in this market. The company’s executive director of finance and investor relations, Andrea Marques de Almeida, declared that Petrobras has yet to “begin to discover” what its future in renewable energies will be. However, she indicated that the company looks closely at offshore wind technology, as the oil company is familiar with the marine environment. The executive’s statements were made during a webinar organized by the Brazilian Oil and Gas Institute (IBP).
“We are exploring the renewables line. We know that we need to do a great job to transform Petrobras into a competitive company in terms of capital structure. We need projects with good return on capital and, therefore, focus on ultra-deep and deep waters ”, he said. “But we have to start finding out what our future will be in renewables. We have projects in the field of wind farms at sea and also in the solar area. We are already investing to find out which assets we will be natural owners in the future. We don’t know yet, being very sincere. But we have to invest to start discovering that future ”, he added.
Andrea also recalled that Petrobras is a company with a very strong connection with the sea. Therefore, she sees a future potential for the company to venture into an environment where it is already used to working. “It is where we are competitive. Just as we think staying with the refineries that are connected to E&P in the South makes sense, I think it will make sense in the future, to have a different generation of energy linked to a place where you understand and operate ”. To remind you, the company is conducting a study today with Equinor to explore possible opportunities for offshore wind energy in Brazil.
“I can’t say why the study is not finished yet. We are in Research and Development. But we are investing to know where we will be good in the future. It is not simple ”, he added.
Still talking about Petrobras’ strategies related to a more sustainable future, the executive said that the state’s strategic plan defines an investment, around US $ 100 million per year, for decarbonization projects. This amount includes CO2 capture, use and storage projects. In research and development, there is a value of US $ 70 million for projects such as renewable diesel, which recently had its first tests concluded. She said she is optimistic about the approval of the product for later commercialization.
“We disclose our portfolio review and make it clear that we will only invest in assets that have a breakeven of 35 dollars per barrel and that have the capacity to operate with low carbon intensity, such as our pre-salt assets”, added the director.
Within the strategic plan, at the end of last year, Petrobras announced its 10 commitments to sustainability. Within this list, six points are associated with carbon management in the company. So they are: zero growth in absolute emissions until 2025; zero routine flare firing by 2030; reinjection of 40 million CO2 by 2025, with approximately 14.4 million tons of CO2 being injected by 2018; 32% reduction in carbon intensity in the E&P segment; a 30 to 50% reduction in methane emissions in the E&P segment also by 2025; and a 16% reduction in carbon intensity in refining by 2025.