Petrobras (PETR4) is making progress on renewable diesel at Repar and will expand production to 4 more refineries

Petrobras (PETR4) in April produced 5.8 million liters of diesel with 5% renewable content, the so-called Diesel R5, the first product to be launched under the BioRefining program of the state-owned company, whose time has expired to enter the global to be included in the energy transition.

The program is expected to arrive in 2027 with production of 10.6 billion liters per year, up from the current 1.6 billion liters, with an expected investment of $600 million.

The April volume, according to the state company Transfer (Grupo Estado’s real-time messaging system) is enough to fuel the tank of up to 19,300 conventional buses, reducing emissions by around 610 tons of greenhouse gases (GHG).

Diesel R is made from the co-processing (community processing) of petroleum products (mineral content) with raw materials of vegetable origin such as soybean oil. This new fuel is a sustainable alternative in the diesel cycle, as the emission reduction associated with the renewable portion compared to mineral diesel is at least 60% and can be even higher depending on the raw material used.

“In addition to the environmental benefit, Diesel R can be blended with conventional diesel in different proportions, without the need for adjustments in vehicle engines, without requiring changes or changes in the logistics chain or in their storage. It is a product with high stability and free from impurities, which guarantees longevity and engine performance,” the state-owned company informs.

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Petrobras plans to increase its Diesel R production capacity six-fold within the horizon of its 2023-2027 strategic plan. To do this, it will expand the production of biofuel to other refineries. Currently only the Presidente Getúlio Vargas Refinery (Repar) in Paraná produces Diesel R with an installed capacity to process up to 1.6 billion liters per year.

By the end of this year, Repar’s capacity is set to expand to a further 2.4 billion liters, for a total capacity of 4 billion liters in the unit. Another measure is the start of production of this fuel at the Cubatão Refinery (RPBC) in São Paulo, with a potential of up to 700 million euros per year.

“Petrobras was the first company in Brazil to develop its own co-processing technology, in addition to developing and implementing diesel with renewable content in our units. Thanks to the commitment of our scientists at Petrobras Research and Innovation Center (Cenpes) and our refining experts, we have patented the technology and have become a reference in this segment,” said Petrobras Commercialization and Logistics Director Claudio in a statement Romeo Schlosser.

By 2027, biofuel production is also scheduled to start at the Paulínia refinery (Replan, SP) with a capacity of up to 2.6 billion liters per year, followed by the Duque de Caxias refinery (Reduc) in Rio de Janeiro with 900 million liters/year and the Capuava (Recap) refinery in Mauá/SP with 2.3 billion liters/year.

“All will be able to produce diesel with renewable fractions. In addition, by 2027, the company will install a plant to produce bioqav (aviation kerosene) and 100% renewable diesel (diesel R100) at the RPBC,” the company said, noting that it is still investigating adjustments for the company-processing of diesel R in other refineries.

In addition to Petrobras, the Mataripe refinery in Bahia, which was sold by Petrobras at the end of 2021, recently announced that it will invest BRL 12 billion over the next decade in the production of green diesel (HVO) and sustainable aviation kerosene (SAF) ) 100% renewable.

It is expected to produce 1 billion liters per year, which will reduce CO2 emissions by up to 80% by replacing fossil fuels.

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