Petrobras Bets $1.2 Billion on SAF as Global Aviation Faces Fuel Shortage

• Petrobras approved $1.2 billion renewable fuels unit at Cubatão refinery.
• Facility will produce sustainable aviation fuel and renewable diesel.
• Project capacity totals 15,000 barrels per day of fuels.
• Investment expands Brazil’s role in global renewable fuel markets.

Petroleo Brasileiro S.A. (Petrobras) has approved a $1.2 billion investment to build a renewable fuels unit at its Presidente Bernardes refinery in Cubatão, according to company filings. This investment expands Brazil’s capacity to produce sustainable aviation fuel and renewable diesel as global demand for lower-carbon transportation fuels accelerates.

The facility will produce renewable jet fuel, known in Brazil as bioQAV, alongside renewable diesel with a combined production capacity of 15,000 barrels per day. The investment is part of Petrobras’ strategy to diversify its refining portfolio while supporting Brazil’s energy transition goals and strengthening its position in international renewable fuel markets.

The project comes as airlines, regulators and fuel suppliers worldwide face increasing pressure to reduce emissions. The International Air Transport Association (IATA) estimates sustainable aviation fuel could contribute around 65% of the emissions reductions needed for the aviation industry to achieve net-zero carbon emissions by 2050, Reuters reported.

Topsoe Technology Anchors Petrobras’ SAF Expansion

Petrobras selected Danish engineering company Topsoe to supply its HydroFlex technology for the project. According to Topsoe, the technology will process up to 1 million metric tons of renewable feedstock annually to produce sustainable aviation fuel blending components and renewable diesel.

The project ranks among Brazil’s largest renewable fuel investments by feedstock-processing capacity and highlights growing international competition for participation in Latin America’s biofuel expansion. Global technology providers are increasingly targeting Brazil due to its abundant agricultural resources and established biofuels industry.

The refinery’s location in Cubatão provides strategic advantages for distribution and exports. Situated within Brazil’s largest industrial region and close to major ports, the facility will have access to logistics infrastructure serving both domestic and international markets.

Brazil’s Aviation Fuel Market Gains Strategic Importance

Demand for sustainable aviation fuel is expected to grow rapidly as governments implement decarbonization policies for the aviation sector.

The International Energy Agency (IEA) estimates that aviation accounts for roughly 2% of global energy-related carbon dioxide emissions. Meanwhile, the International Civil Aviation Organization’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) is encouraging airlines to increase the use of lower-carbon fuels.

Global SAF production remains limited. According to IATA, sustainable aviation fuel represented less than 1% of global jet fuel consumption in 2025. A facility capable of producing 15,000 barrels per day, therefore, represents a meaningful addition to available supply as airlines seek reliable sources of compliant fuel.

Petrobras’ Broader Investment Strategy

The renewable fuels project forms part of Petrobras’ larger industrial expansion program in Brazil. The company plans to invest R$37 billion across São Paulo state through 2030, a program expected to generate approximately 38,000 direct and indirect jobs, according to Petrobras.

President Magda Chambriard has emphasized the strategic importance of São Paulo to the company’s refining operations. Petrobras has stated that refineries in the state account for roughly 50% of its refined-product output, making the region central to future growth plans.

The company is simultaneously investing in conventional energy production. Petrobras recently announced a separate $3.5 billion investment program in Bahia aimed at increasing regional production to approximately 30,000 barrels of oil equivalent per day while creating around 6,500 jobs.

Balancing Energy Transition Goals With Investor Concerns

Despite increasing investments in renewable fuels, Petrobras continues to face scrutiny from investors and environmental groups over its long-term strategy.

Despite increasing investments in renewable fuels, Petrobras continues to face scrutiny from investors and environmental groups over its long-term strategy. The company remains one of the world’s largest offshore oil producers and continues to expand upstream production. Environmental groups, including Greenpeace Brazil and Climate Action 100+, have urged major oil producers to align capital spending with global climate goals, while Petrobras argues that revenues from oil production are needed to fund investments in low-carbon and renewable energy projects.

Investor sentiment has also been affected by volatility in global crude markets. Brent crude, the international benchmark used by Petrobras in its planning assumptions, was trading at around $70 per barrel in recent sessions, according to data from the U.S. Energy Information Administration. As a state-controlled company, Petrobras often faces additional scrutiny regarding capital allocation and strategic priorities compared with privately owned international peers.

What the Project Means for Global SAF Markets

The Presidente Bernardes investment reinforces Brazil’s growing importance in the renewable fuels supply chain. The country is already one of the world’s largest biofuel producers, supported by a mature ethanol industry and abundant agricultural feedstocks.

For international aviation markets, additional SAF production capacity could help narrow the gap between supply and demand. Airlines in North America and Europe are facing increasingly stringent emissions targets and are seeking diversified fuel sources beyond domestic production.

Europe’s efforts to reduce dependence on traditional energy imports and expand renewable fuel supply chains have also increased interest in Latin American energy partnerships. Brazil’s combination of refining capacity, feedstock availability and export infrastructure positions it as a potential long-term supplier of sustainable aviation fuels to global markets.

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