Brazil’s state-run oil company Petrobras is making a strong comeback in the ethanol market. On June 24, 2025, executive William Nozaki confirmed that the company plans to announce a new ethanol partnership by the end of the year. This move is part of Petrobras’s plan to invest $2.2 billion in ethanol production from 2025 to 2029, reports The Rio Times.
The goal is to produce 2 billion liters of ethanol annually using sugarcane and corn from Brazil’s Southeast and Central-West regions. Instead of building new plants, Petrobras is in talks with major ethanol producers like Raízen, BP, and Inpasa. By teaming up, Petrobras can provide funding and infrastructure while its partners bring experience and existing facilities.
This strategy helps the company reduce risk and move faster into the renewable fuel space. CEO Magda Chambriard said ethanol is now the main alternative to gasoline in Brazil, which faces falling sales as cleaner fuels become more popular.
Recent government policies have supported the growth of biofuels like ethanol. The new investment marks Petrobras’s return to a market it once led, aiming to quickly regain influence through strategic partnerships.
This ethanol plan is part of a larger $111 billion five-year business strategy. Petrobras will also invest in oil refining, exploration, fertilizers, and clean energy sources like wind, solar, and hydrogen. The company also plans to pay up to $55 billion in dividends to shareholders.
Petrobras’s renewed focus on ethanol reflects its push to stay competitive as demand shifts toward cleaner energy. For business readers, it’s a clear signal that the company is adjusting its long-term strategy to match changing global and local energy trends.
