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Petrobras (PBR) to Invest $5.2B in Brazil Green Energy Projects
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Petrobras (PBR - Free Report) , a Brazil-based oil and gas company has recently declared its decision to abstain from investing in wind and solar projects outside the borders of the country in a strategic move. This announcement comes straight from the energy transition helm, as Mauricio Tolmasquim, the head of energy transition at Petrobras, revealed recently in a statement to Reuters.
Petrobras' Local Greenfield Focus
Petrobras' CEO, Jean Paul Prates, had hinted at the possibility of the company exploring a minority stake in offshore wind farms beyond Brazil's shores. However, the latest pronouncement indicates a resolute shift toward developing a robust portfolio of local greenfield projects. This aligns seamlessly with the vision of Brazil's president Luiz Inacio Lula da Silva, emphasizing job creation and enhancing the nation's energy-transition efforts.
Ambitious Investment Plans
By 2028, Petrobras plans to invest a significant $5.2 billion in solar and wind projects. The initial emphasis will be on onshore plants coupled with ongoing research into the prospects of offshore wind ventures in Brazil. This strategic commitment was unveiled alongside Petrobras' new business plan last November, showcasing a dedication to renewable energy on a national scale.
Offshore Wind Studies in Partnership With Equinor
Petrobras took a significant step into offshore wind exploration by presenting its inaugural studies in collaboration with Norway's Equinor ASA (EQNR - Free Report) . This partnership signals a global collaboration to harness offshore wind's potential, bringing together PBR's and EQNR's expertise for a sustainable energy future.
Anticipating Offshore Wind Auctions
Tolmasquim, in an interview, expressed Petrobras' anticipation for the Brazil government's inaugural auction for offshore wind areas later this year. This aligns with the nation's aim to establish a regulatory framework for offshore wind and green hydrogen by the end of 2024, as communicated by Brazil's energy minister in June 2023.
Portfolio Composition and Partnerships
While Petrobras envisions a predominantly greenfield renewable power generation portfolio, Tolmasquim clarified that around 20% of it would include projects already in operation. These ventures are anticipated to be executed in collaboration with various partners, with Petrobras holding stakes, often at 50% or lower.
Conclusion
Petrobras' decision to concentrate its renewable energy investments within Brazil showcases a commitment to local development, employment generation, aligning with the nation's energy transition goals. The forthcoming offshore wind auctions and collaborative studies with Equinor underscore Petrobras' pivotal role in shaping Brazil's renewable energy landscape.
Zacks Rank and Key Picks
Currently, PBR and EQNR carry a Zacks Rank #3 (Hold).
Oceaneering International is worth $1.92 billion. In the past year, its shares have risen 4%.
The company provides engineered services and products, and robotic solutions to the offshore energy, defense, aerospace, manufacturing and entertainment industries worldwide.
The Williams Companies is valued at $43.86 billion. The company currently pays a dividend of $1.79 per share or 5.08% on an annual basis.
WMB, the U.S.-based energy infrastructure company, operates through Transmission & Gulf of Mexico, Northeast G&P, West, and Gas & NGL Marketing Services segments.
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Petrobras (PBR) to Invest $5.2B in Brazil Green Energy Projects
Petrobras (PBR - Free Report) , a Brazil-based oil and gas company has recently declared its decision to abstain from investing in wind and solar projects outside the borders of the country in a strategic move. This announcement comes straight from the energy transition helm, as Mauricio Tolmasquim, the head of energy transition at Petrobras, revealed recently in a statement to Reuters.
Petrobras' Local Greenfield Focus
Petrobras' CEO, Jean Paul Prates, had hinted at the possibility of the company exploring a minority stake in offshore wind farms beyond Brazil's shores. However, the latest pronouncement indicates a resolute shift toward developing a robust portfolio of local greenfield projects. This aligns seamlessly with the vision of Brazil's president Luiz Inacio Lula da Silva, emphasizing job creation and enhancing the nation's energy-transition efforts.
Ambitious Investment Plans
By 2028, Petrobras plans to invest a significant $5.2 billion in solar and wind projects. The initial emphasis will be on onshore plants coupled with ongoing research into the prospects of offshore wind ventures in Brazil. This strategic commitment was unveiled alongside Petrobras' new business plan last November, showcasing a dedication to renewable energy on a national scale.
Offshore Wind Studies in Partnership With Equinor
Petrobras took a significant step into offshore wind exploration by presenting its inaugural studies in collaboration with Norway's Equinor ASA (EQNR - Free Report) . This partnership signals a global collaboration to harness offshore wind's potential, bringing together PBR's and EQNR's expertise for a sustainable energy future.
Anticipating Offshore Wind Auctions
Tolmasquim, in an interview, expressed Petrobras' anticipation for the Brazil government's inaugural auction for offshore wind areas later this year. This aligns with the nation's aim to establish a regulatory framework for offshore wind and green hydrogen by the end of 2024, as communicated by Brazil's energy minister in June 2023.
Portfolio Composition and Partnerships
While Petrobras envisions a predominantly greenfield renewable power generation portfolio, Tolmasquim clarified that around 20% of it would include projects already in operation. These ventures are anticipated to be executed in collaboration with various partners, with Petrobras holding stakes, often at 50% or lower.
Conclusion
Petrobras' decision to concentrate its renewable energy investments within Brazil showcases a commitment to local development, employment generation, aligning with the nation's energy transition goals. The forthcoming offshore wind auctions and collaborative studies with Equinor underscore Petrobras' pivotal role in shaping Brazil's renewable energy landscape.
Zacks Rank and Key Picks
Currently, PBR and EQNR carry a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like Oceaneering International, Inc. (OII - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and The Williams Companies (WMB - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Oceaneering International is worth $1.92 billion. In the past year, its shares have risen 4%.
The company provides engineered services and products, and robotic solutions to the offshore energy, defense, aerospace, manufacturing and entertainment industries worldwide.
The Williams Companies is valued at $43.86 billion. The company currently pays a dividend of $1.79 per share or 5.08% on an annual basis.
WMB, the U.S.-based energy infrastructure company, operates through Transmission & Gulf of Mexico, Northeast G&P, West, and Gas & NGL Marketing Services segments.