By Brazil Stock Guide – Brazil will need to increase its natural gas consumption to meet the growing demands of electrification until other energy solutions become feasible, according to Claudia Brun, Vice President of Strategy and Business Development at Equinor (EQNR). Speaking at the Brazilian Center for International Relations (Cebri) event during Rio Climate Week, Brun highlighted that the rise of electric vehicles, the expansion of data centers, and efforts to replace fossil fuels in industrial processes will place significant pressure on the country’s energy infrastructure.
This surge in energy demand is what Brun referred to as the “energy addition” process. As Brazil increases its reliance on renewable sources such as wind and solar power, whose generation is variable, the stability of the energy grid has become an increasing challenge. In this context, natural gas presents a quick solution to fill the gap until energy storage systems, such as battery technology, can be scaled effectively.
“We’re seeing a ‘game change’ with the influx of many Chinese electric cars into Brazil, a development that was not anticipated,” Brun said, referencing the rapid growth of the electric vehicle market in Brazil.
In addition to the growing number of electric cars, other factors, such as the expansion of data centers and the push for fossil fuel substitution in production processes, will continue to place more demands on the country’s electricity grid. Until energy storage technologies and other solutions are sufficiently developed, natural gas will be crucial for ensuring the stability of Brazil’s energy supply.
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