By Brazil Stock Guide – Petrobras (PETR4.SA) is calling for a mandatory rule in Brazil to boost the use of co-processed diesel, a fuel that combines fossil diesel with vegetable oil. The company’s president, Magda Chambriard, said on Tuesday that the state-run producer has the capacity to supply diesel with up to 10% renewable content. Her remarks were registered during an event hosted by the Rio de Janeiro Federation of Industries (Firjan).
Brazil’s recently approved Future Fuel law, designed to incentivize decarbonization, does not cover co-processed diesel. Instead, it focuses on scaling up production of so-called “green diesel.” Chambriard argued that the company’s product should be included under the country’s renewable targets, according to Reuters. “Our co-processed diesel still has no mandate,” she said. “We will do this without clashing with Brazilian agribusiness. Agro and oil must walk hand in hand.”
The CEO stressed that the company wants to source vegetable oil directly from Brazil’s agricultural sector to fuel its renewable operations. The initiative is part of Petrobras’s strategy to lower Scope 3 emissions — those generated when consumers burn its fuels.
Chambriard also defended continued oil exploration to secure new reserves, stressing its role in social and economic development. “We don’t believe in a climate plan without an energy security plan and more energy to improve the Human Development Index,” she said.
Her comments came shortly after environmental regulator Ibama requested further information from Petrobras regarding its license application to drill a new well in the Foz do Amazonas basin, one of the country’s most sensitive exploration frontiers.
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