Oil giant Petrobras earmarks new cash for onshore renewables as offshore wind plans fade

Brazilian oil giant Petrobras has unveiled a business plan that points to a scaling down of its earlier ambitions of developing offshore wind, while earmarking $4,3bn for onshore renewables and the same amount for biofuels.

Petrobras updates its rolling five-year business plans (PNs) on an annual basis. The first one to be announced since CEO Magda Chambriard took over from renewables enthusiast Jean Paul Prates sets out a total capital expenditure target of $111bn for the 2025-2029 period, up nearly 9% from the PN for 2023-2028.

Petrobras said it will invest $77bn in exploration and production for oil and gas, about 5% higher than under the previous plan, which was also an increase. The company expects to be producing the equivalent of 3.2 million barrels of oil per day at the end of the plan, about 19% higher than current output.

Petrobras continues to stress its intention of investing heavily in low carbon initiatives, with $16.3bn earmarked for a category that includes decarbonisation of oil and gas and R&D.

The company said low carbon spending was 42% higher than under the last plan, and will account for 15% of capital expenditure, compared with 11% before.

But the latest business plan suggested a marked scaling down in ambitions for offshore wind.

Of the $5.7bn set aside for low carbon energies, $4.3bn was earmarked for onshore wind and solar PV.

Offshore wind's five year allocation of $900m will be shared with carbon capture, utilisation and storage (CCUS) and corporate venture capital.

The previous version of the PN set out plans to invest $5.2bn in wind and solar but emphasised offshore wind, referring to 16 active projects and targeting a net 30GW for Petrobras in offshore wind capacity over the longer term.

Chambriard's predecessor at Petrobras, Jean Paul Prates, sponsored a draft regulatory framework for offshore wind in his previous role as Senator and had positioned Petrobras to become a leading developer of wind at sea.

The new business plan also ignored an earlier target of reaching 5GW of renewable power generation capacity by 2028.

“With regard to renewable generation projects, the company will preferably seek to work in partnership with large companies in the sector, with the objective of decarbonising operations, integrating the portfolio of low-carbon solutions and capturing market opportunities in Brazil," Petrobras stated.

Another $2.6bn was allocated for natural gas and energy, including some projects aimed at reducing emissions and renewable energy initiatives, and $4.3bn was allocated for a range of biofuels.

COP30 turns on the spotlight

Brazil will host the UN's crucial COP30 climate summit next year, and the sustainability of its own plans for energy and the wider economy will be under scrutiny.

Petrobras outlined its future thinking on sustainability in what was described as a strategic plan for 2050 (PE 2050), but spoke in terms of “reconciling the focus on oil and gas with the diversification of low carbon businesses, including petrochemicals, fertilisers and biofuels, while attaining net zero operational emissions by mid-century.

“PE 2050 presents the path that Petrobras will follow as a leading company in the fair energy transition, reducing its emissions, maintaining its participation in the energy supply in Brazil and with a growing role for renewable energies in its portfolio, contributing to the country's energy security," the state-controlled company stated.