Petrobras voices opposition to Brazilian government’s biofuels boost

Petróleo Brasileiro SA, aka Petrobras, has voiced strong opposition to the Brazilian government led initiative to increase the use of biofuels, according to Reuters.

The news comes shortly after state controlled Petrobras completely withdrew from the biofuels sector.

Following calls from the Brazilian government for public feedback and comment on its RenovaBio program to boost biofuels, Petrobras submitted a document saying it was worried about the impact greater use of biofuels could have on food production and forest conservation.

Brazil’s energy ministry has now made Petrobras’ response public.

According to Reuters, Petrobras said in the document that sugar mills were financially unprepared to raise ethanol output. It also claimed that it was unnecessary to up biofuel use to meet Brazil’s commitments under the global climate pact.

In late 2016, Petrobras sold its stakes in ethanol producers Guarani and Nova Fronteira, and closed some of its biodiesel plants. At the same time the company prioritised its investment in offshore oil fields to increase revenue and reduce its $100 billion (EUR 93 billion) debt, according to Reuters.

Until this sharp change in position, Petrobras had been working to diversify its energy sources and become one of the world’s top five biofuels producers.