Brazil energy roundup: New Petrobras directors, gas tax incentives, green financing, and more

New Petrobras directors 

The Petrobras board of directors has elected new members to the company's executive management board:

Renata Lopes is now on the engineering, technology and innovation board, Sylvia Maria dos Anjos on the exploration and production board and Fernando Melgarejo on the finance and investor relations board.

The nominations were submitted to internal corporate governance procedures, including the respective compliance and integrity analyses required for the company's succession process.

Gas treatment 

Petrorecôncavo has received authorization from Brazil’s oil and gas watchdog ANP to start operating the São Roque natural gas treatment unit in Bahia state. 

With a processing capacity of up to 400,000m3/d, the unit will receive production from the Mata de São João, Remanso, Jacuípe and Riacho São Pedro concessions. 

The construction of the São Roque UTG, with an investment of 23 million reais (US$4.1mn), is aimed at optimizing the costs of processing and transporting natural gas. 

It is scheduled to start up on July 1. 

Gas contracting

Rio Grande do Sul's Sulgás has launched a public call for proposals to supply natural gas and biomethane from next year. 

The initiative envisages a potential of up to 300,000m³/d in 2025 and up to 500m³/d in 2026 and 2027. 

Proposals to receive the fuel via pipeline, compressed natural gas (CNG) or liquefied natural gas (LNG) will be evaluated.

Gas tax incentive

Companies or consortia responsible for independent projects to generate electricity from natural gas, that is, thermoelectric plants, will have a differentiated tax regime until the end of 2032 in Rio de Janeiro state.  

This was determined by bill 3.766/24, approved by the state’s legislative assembly (Alerj) on June 27. 

The measure goes to Governor Cláudio Castro, who has up to 15 working days to approve it.

The tax incentives apply to new projects that have obtained the prior environmental license and are winners of the energy auctions held by the local electric power regulatory agency Aneel between 2015 and 2032, under the terms of federal legislation.

Pre-salt oil tender

Pré-Sal Petróleo SA (PPSA) has altered the notice regulating the federal government's auction of 33Mb (million barrels) of oil. 

Scheduled for July 31, the auction will be to sell the entire estimated 2025 production of the Mero and Búzios fields. 

Originally, companies could only apply individually or as a consortium, but now it will also be possible to apply as a group of companies.

"The federal government is expected to raise more than 13bn reais with this auction, generating more development in the country, job opportunities and, consequently, improvements in the lives of Brazilians," said mines and energy minister Alexandre Silveira.

Open acreage 

The board of directors of the ANP approved the revision of the draft bidding notice and the draft concession contracts for blocks and areas with marginal accumulations under the permanent concession offer.

Among the main improvements are the exclusion of the participation fee and the data sample, the possibility for the bidder to submit a bid guarantee without a declaration of interest and the establishment of a fixed minimum signature bonus for blocks in mature onshore basins and new frontier basins.

Fuel sales

The ANP's board also approved the signing of a technical cooperation agreement with Ebazar.com.br, the company responsible for the Mercado Livre platform. 

The aim is to crack down on the sale, on the online trading platform, of lubricating oils not registered with the ANP and methanol resold as fuel, in breach of the regulatory agency's rules.

LNG

The regulator also gave the green light to a resolution revising the regulation of activities involving the packaging and movement of liquefied natural gas (LNG) in bulk, using alternative modes to pipelines, such as roads. 

The aim is to modernize the regulation to take into account new business models, offering flexible alternatives for the development of small-scale LNG projects and providing greater capillarity for natural gas, especially in regions lacking pipeline infrastructure. 

Oil financing

Enauta raised 2.7bn reais (US$490mn) with its third and fourth debenture (local bonds) issues.

The company is the operator of the Atlanta field in the Santos basin. 

BDMG green financing

The Minas Gerais Development Bank (BDMG) has launched a new line of credit to finance the purchase of machinery and equipment related to reducing greenhouse gas emissions and adapting to climate change.

Medium-sized and large companies in Minas Gerais will have access to credit with rates ranging from 9.78% to 12.24% per annum and a repayment period of up to 12 years for the purchase of electric or biofuel buses and trucks, machinery for use in sustainable agriculture, photovoltaic generating systems, equipment for urban rail passenger transportation, among other items that can be financed.

Green financing for H2

Brazil's BNDES development bank and the European Investment Bank (EIB) have begun negotiations to finance green hydrogen projects. 

"The BNDES has several projects being analyzed in this area, which is of great interest to the European Union," explained the president of the Brazilian development bank, Aloizio Mercadante, during a meeting with the head of the EIB office, João Fonseca Santos, in Portugal. 

Green hydrogen deal

Eletrobras and Suzano have signed a partnership to develop sustainable solutions based on the use of biogenic CO2 generated at a Suzano production unit. 

The agreement on the use of renewable raw materials provides for the development of joint studies for the production of renewable hydrogen and synthetic fuels, aimed, for example, at replacing fossil fuels in various logistics modes.

Electromobility

President Luiz Inácio Lula da Silva signed into law the green mobility and innovation program (Mover).

Mover provides for 19.3bn reais in financial credits between 2024 and 2028, which can be used by companies to reduce federal taxes in return for investments made in research and development (R&D) and new production projects.

Scania's brings first 100% electric bus to Brazil 

Scania has launched the brand's first 100% electric bus in Brazil. 

The vehicle has a range of 250-300km and options of four or five battery packs. 

It is designed mainly for urban use.

Carbon credit

Casa dos Ventos has become the first generator in Latin America to obtain the "diamond" certification for issuing carbon credits from the Global Carbon Council (GCC). 

The achievement was made for the first stage of the Rio do Vento wind complex, with an installed capacity of 504MWm. 

With its two phases combined, the complex is one of the largest in the world, totaling 1,038MW.