Petrobras Bets $1.2 Billion on Jet Fuel Made From Plants

Energy · Brazil

Key Facts

—The decision. Petrobras approved a final go-ahead on June 19 for a dedicated plant making bio-jet fuel and renewable diesel.

—The price tag. The investment is put at about $1.2 billion, with construction due to start by the end of 2026.

—The site. The plant sits at the Presidente Bernardes refinery in Cubatão, in São Paulo state.

—The output. It is designed to make up to fifteen thousand barrels a day of renewable fuels, starting in 2030.

—The driver. The project is tied to global aviation rules and to Brazil’s own Future Fuel Law, both pushing airlines toward cleaner fuel.

—The stakes. It is one of the clearest signs yet that Brazil’s oil giant is spending real money on the energy transition.

Petrobras biorefining took a concrete step this month, as Brazil’s state oil company committed more than a billion dollars to a plant that will turn crops and waste into jet fuel and diesel.

For decades Petrobras has been a story about crude oil, drilling ever deeper off Brazil’s coast to pump more of it. This month it put serious money behind a very different idea.

The company will build a plant that makes fuel from renewable raw materials instead of fossil crude. It is a small but telling shift for one of the world’s biggest oil producers.

What Petrobras biorefining will produce

According to Petrobras’s own filing on June 19, its board gave a final investment decision to a dedicated biorefining plant. The estimated cost is around $1.2 billion.

The plant will sit at the Presidente Bernardes refinery in Cubatão, an industrial city in São Paulo state. Building work is meant to begin by the end of this year.

Once running, it is designed to turn out up to fifteen thousand barrels a day of two fuels. One is renewable diesel, the other is bio-jet fuel for aircraft.

Both are made from things like vegetable oils and waste fats rather than crude oil. Crucially, they can be used in today’s engines and planes without modification, which is what makes them attractive.

The company does not expect the plant to start up until 2030. That long lead time is normal for a project of this size and complexity.

The decision moves the project into its final phase of signing contracts and lining up the engineering work. It now belongs to what the company calls its base portfolio, the set of investments it has firmly committed to deliver.

Why the timing matters

The decision is not happening in a vacuum. Two sets of rules are pushing it along, one global and one Brazilian.

Internationally, the aviation industry has agreed a scheme that obliges airlines to offset and cut their carbon emissions over time. That steadily raises demand for cleaner jet fuel.

At home, Brazil passed a Future Fuel Law in 2024 that mandates a growing share of sustainable fuel in the mix. Petrobras is positioning itself to supply that market rather than cede it to rivals.

In plain terms, the company is reading where the rules are heading and building the capacity to meet them. The bet is that demand for low-carbon fuel will be large and durable.

Brazil also has a natural head start in this race. It grows vast quantities of soy and sugar cane and generates plenty of agricultural waste, the very raw materials a biorefinery needs.

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Petroleo Brasileiro Petrobras SA ADR

PETR4 · B3 São PauloEnergyOil & Gas Integrated

Share price · live

$38.60

▼ -0.52% today

Market cap

$107.9 bn

3.7 bn shares

P / E

5.3

EPS 3.18

Dividend yield

17.8%

$2.99 / share

The company

Employees

43,199

Headquarters

Rio De Janeiro

Listed since

2000

Website

Petróleo Brasileiro S.A. – Petrobras explores, produces, and sells oil and gas in Brazil, China, the United States, the Americas, Asia, Europe, Singapore, and internationally. It operates through three segments: Exploration and Production; Refining, Transportation & Marketing; and Gas & Low Carbon Energies. The Exploration and…

Financial performance · FY · USD

RevenueNet income

2023

$105.5 bn

$25.7 bn

2024

$91.4 bn

$7.5 bn

2025

$90.8 bn

$20.1 bn

Net income declined to $20.1 bn in 2025, from $25.7 bn in 2023.

Valuation & returns

EBITDA margin

40.9%

Net margin

21.6%

Return on equity

25.6%

Price / book

1.24

Enterprise value

$167.2 bn

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+0.4%

Latest earnings

Q1 2026 — reported EPS 0.96 vs 0.99 expected

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Why Petrobras biorefining matters for investors

For a company whose fortunes rise and fall with the oil price, diversifying into renewable fuels spreads the risk. It also answers pressure from investors who worry about the long-term value of pure oil plays.

The project belongs to Petrobras’s 2026 to 2030 business plan, which earmarks billions for the energy transition. This plant turns one slice of that promise into a firm commitment with a price tag attached.

The scale is still modest next to the company’s vast crude output. Fifteen thousand barrels a day is a fraction of what Petrobras pumps in oil, so this will not transform its earnings.

What it does is plant a flag. Sustainable aviation fuel is a market the world’s energy majors are racing to enter, and Brazil has an edge in the crops and waste that feed it.

There is a competitive angle too. If Petrobras can make cleaner fuel cheaply at home, it can defend its grip on the Brazilian market against importers as the new rules bite.

The forward signal for investors is execution. With a final decision made, the questions now shift to cost control, the price of feedstock, and whether the 2030 start-up date holds.

Frequently Asked Questions

What did Petrobras biorefining approve?

On June 19 Petrobras gave a final investment decision for a plant making bio-jet fuel and renewable diesel at its Cubatão refinery. The cost is put at about $1.2 billion, with construction due to start by the end of 2026.

How much fuel will the plant make?

It is designed to produce up to fifteen thousand barrels a day of renewable fuels. The start-up is scheduled for 2030.

Why is Petrobras investing in renewable fuel?

Global aviation rules and Brazil’s Future Fuel Law are both raising demand for cleaner fuels. The project also helps the oil company diversify beyond crude as part of its 2026 to 2030 business plan.

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