TotalEnergies eyeing Brazil’s carbon credit market

France’s TotalEnergies is willing to invest in Brazil’s carbon credit market, its CEO Patrick Pouyanné told the Rio Oil and Gas conference on Monday.

“Brazil is a huge potential carbon sink. We could invest in a fund for the Amazon, but it would have to generate carbon credits for us,” he said. 

For that to happen, Brazil must advance its carbon credit market legal framework, which is being discussed in congress. 

“We're investing in the US [carbon credit market] because its legal framework is clear. So if Brazil moves forward with this, it would be a big step,” Pouyanné said. 

TotalEnergies has several renewable generation and oil and gas assets in Brazil. 

In the electric power business, the company is mostly developing projects in partnership with local group Casa dos Ventos, aiming to reach 4GW in the pipeline by 2026 from the current 2GW. 

It is also among the companies that have submitted offshore wind projects to environmental regulator Ibama. 

The regulatory framework for the segment is also under review in congress. 

"Before investing in offshore wind, I think Brazil can wait a few years, save its money, because it has a lot of onshore potential," Pouyanné said. 

In oil and gas, TotalEnergies is the operator of the Lapa pre-salt field and holds stakes in a series of projects operated by federal oil giant Petrobras, like the Mero field in the Libra block. 

“We’re increasingly confident about the potential of the pre-salt,” said Pouyanné, recalling that the company approved the final investment decision for the development of the Sépia and Atapu fields in May this year. 

The executive said Petrobras would be welcome to become TotalEnergies' partner in projects in other countries in the Atlantic basin, such as Suriname, Angola, South Africa and Namibia. 

“We’re ready to explore the Atlantic basin and, if there are opportunities, we could offer Petrobras [the chance] to participate. Commercial discussions are underway,” said Pouyanné, who recently met with Petrobras CEO Magda Chambriard.  

After a decade reducing its international footprint, the state-run firm has resumed investments abroad. 

In February, Petrobras concluded the acquisition of stakes in three exploration blocks in São Tomé and Príncipe, off the coast of Gabon, through a competitive process led by Shell, which is the operator of the assets.