Petrobras Drives the use of Renewable Energies

Petrobras - www.petrobras.com.br

The world's largest renewable fuel program is based on alcohol in Brazil. The feasibility of this program was ensured through the decisive participation of Petrobras. Today, as an oil, gas and energy enterprise that is involved in voluntary initiatives to mitigate greenhouse gases, Petrobras is working towards the diversification of Brazil's energy matrix through using other renewable sources.

Renewable energies moved to the fore in Brazil during the 1970s, when its National Fuel Alcohol Program offered the nation economic and environmental benefits. Taking advantage of its vast agricultural potential, Brazil invested in planting sugarcane, which is the raw material for fuel alcohol. Ethanol was used for vehicles, and was also blended with the gasoline consumed all over Brazil. Initially, 5% ethanol was added to gasoline, rising steadily to the 25% in effect today. Blending alcohol with gasoline upgrades its octane rating, ranking Brazil as a global pioneer through eliminating the use of lead by using renewable energy. Some of the resulting environmental benefits include reductions in greenhouse gas emissions and better air quality in urban centers.

Brazil is proud to be the world's leading ethanol producer, with full mastery of its entire production chain. With the logistics infrastructure required to market this project, Petrobras is well qualified to serve as a major player in the fuel alcohol business on the international market as well.

Biodiesel helps reduce greenhouse gases
Today, another biofuel program similar to the alcohol scheme is under development in Brazil. Biodiesel can be produced from oilseeds, such as castor, dendê, sunflower, babassu, or cotton, and when added to diesel oil, it offers social, environmental and economic benefits. In addition to helping mitigate greenhouse gases emissions and pollutants, biodiesel will encourage job generation and income in agricultural areas in many parts of the country. Brazil is gearing up for the production of biodiesel on an industrial scale; during the initial stage, 2% biodiesel will be added to fossil diesel, soon rising to 5%.

Petrobras is developing processes that will cut biodiesel production costs, using untreated seeds as raw material and adding value to the resulting products. New uses for by-products are also being researched. The use of biodiesel to produce fertilizers, synthetic lube-oils, ethanol and oil well drilling liquids are just a few of these possibilities.

Sun and wind: renewable energy sources to be exploited
Wind power is already a reality in Northeast Brazil, where Petrobras has a pilot plant with a capacity of 1.8 MW. In order to step up electricity generation based on wind power, the wind potential has been analyzed at twenty other sites in Brazil, as well as a location in Argentina.

Solar energy is used by Petrobras for heating water for its employee restaurants and changing rooms at refineries, as well as photovoltaic panels providing cathode protection for underground pipelines. These panels also supply the electricity required by the instrumentation, control and communications systems of small offshore oilrigs, with 100 KW installed capacity.

As a Brazilian enterprise that heads up the domestic oil productsmarket, Petrobras has a powerful presence in Latin America. In 2004, the Strategic Plan highlighted renewable energy sources in its business agenda, allocating up to 0.5% of its budget to investing in projects that encourage biofuel production (biodiesel and biogas), as well as wind and solar power. In parallel to the use of natural gas, renewable energy sources reflect the vision of Petrobras, whose activities focus on profitability associated with social accountability and environmental preservation.

Voluntary projects mitigating greenhouse gases emissions
As a signatory to the United Nations Framework Convention on Climate Change, Brazil has done its utmost to ensure the feasibility of voluntary actions and projects designed to mitigate greenhouse gases emissions into the atmosphere. These efforts include upgrading the energy performance of its equipment and processes, replacing carbon intensive fuels by alternatives - such as natural gas - that are less carbon intensive, developing biodiesel production technologies, and establishing power generation units based on alternative and renewable energy sources.

Petrobras also supports research projects analyzing native species in Brazilian biomes in order to fix carbon from the atmosphere, producing foods, and surveying species with potential for biodiesel production. Adhering to the United Nations Global Covenant, Petrobras signed a voluntary agreement through which it agrees to guarantee respect for principles related to human rights, working conditions and the environment.

Through these initiatives, Petrobras wishes to encourage Clean Development Mechanism projects as set forth by the Kyoto Protocol. This mechanism is designed to assist developing countries such as Brazil, helping them attain sustainable development, while allowing the more developed nations to comply with their quantified commitments to curtail and reduce emissions.

For more information: miragaya@petrobras.com.br