Petrobras, Brazil’s state oil giant, is gearing up for an extensive foray into the wind and solar sectors this year, as revealed by its chief executive in a recent interview with Reuters.
Jean-Paul Prates outlined the company’s ambitious plan to establish a portfolio of stakes in wind and solar projects, targeting a capacity of 2 GW. He emphasized the strategic and responsible execution of the energy transition, anticipating positive market recognition that could enhance Petrobras’s stock value.
In addition to its focus on wind and solar, Petrobras is eyeing offshore wind opportunities, eagerly awaiting the finalization of regulatory frameworks for this segment of the alternative energy industry.
Prates expressed confidence in Petrobras’s dominance in the offshore wind market, characterizing it as a significant strategic move.
Petrobras Initiates Expansion into Wind and Solar in the Current Year (Credits: The New York Times)
Petrobras has committed substantial financial resources to its decarbonization initiatives, aiming to invest $3.7 billion by 2027. Simultaneously, the company plans to allocate around $5.2 billion to expand its presence in wind and solar ventures.
However, concerns have been raised by some observers who question whether Petrobras’s decision is primarily politically motivated rather than economically driven. Adriano Peres, director at consultancy CBIE, voiced apprehension, citing past instances where political considerations had led to unfavorable outcomes for the company.
Despite these concerns, the allocated investment for wind and solar remains modest compared to Petrobras’s overarching budget. In November of the previous year, the company disclosed a budget of $102 billion for the five-year period ending in 2028, with 72% earmarked for oil and gas exploration and production.
