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Petrobras Commissions New Hydrotreatment Unit at REPLAN

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Petróleo Brasileiro S.A. - Petrobras (PBR - Free Report) has launched operations at a new diesel hydrotreatment unit at its REPLAN refinery in Paulínia, São Paulo, the largest refinery in Brazil. The new unit, which began operating on May 27, is designed to produce 63,000 barrels per day (b/d) of low-sulfur S-10 diesel and up to 21,000 b/d of jet fuel. Notably, the startup was completed three months ahead of schedule and within the original budget.

This expansion marks a significant milestone in Petrobras’ efforts to phase out S-500 diesel, a higher-sulfur fuel, in favor of the cleaner S-10 variant. The switch enhances energy efficiency, lowers sulfur oxide emissions and supports cleaner air for consumers and surrounding communities.

Taking a Step Toward Cleaner, More Efficient Fuel Production

The new hydrotreating unit is more than just a capacity boost. It is part of Petrobras’ broader 2024-2028+ strategic plan focused on upgrading refining infrastructure to meet global low-carbon standards. Alongside cleaner diesel, the unit’s ability to produce sustainable jet fuel responds to both environmental pressures and growing aviation demand.

An integral hydrogen recovery unit, with a capacity of 150,000 cubic meters per day, complements the system, supporting the efficiency of the hydrotreater and aligning with Petrobras’ sustainability goals.

Reaffirming REPLAN’s Leadership in Refining

Originally inaugurated in 1972, REPLAN has grown to become the heart of Brazil’s fuel production with the largest processing capacity and a throughput of 434,000 b/d, accounting for nearly a quarter of the national diesel market. The site’s strategic importance was recently recognized when it was named “Refinery of the Year 2024” by the World Refining Association.

With a $15.2 billion investment planned over the next five years, Petrobras aims to elevate the operational performance of its refineries, reinforcing Brazil’s role in the global shift toward cleaner energy.

PBR’s Zacks Rank & Key Picks

Headquartered in Rio de Janeiro, Petroleo Brasileiro S.A. or Petrobras S.A., is the largest integrated energy firm in Brazil and one of the largest in Latin America. Currently, PBR has a Zacks Rank #3 (Hold).

Investors interested in the energy sector might look at some better-ranked stocks like Flotek Industries, Inc. (FTK - Free Report) , Epsilon Energy Ltd. (EPSN - Free Report) and RPC, Inc. (RES - Free Report) . While Flotek Industries and Epsilon Energy currently sport a Zacks Rank #1 (Strong Buy) each, RPC carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Flotek Industries develops and delivers prescriptive chemistry-based technology, including specialty chemicals, to clients in the energy, consumer industrials and food & beverage industries. The Zacks Consensus Estimate for FTK’s 2025 earnings indicates 55.88% year-over-year growth.

Houston, TX-based Epsilon Energy is an on-shore focused oil and natural gas company that is engaged in the acquisition, development, gathering and production of oil and gas reserves. The Zacks Consensus Estimate for EPSN’s 2025 earnings indicates 200% year-over-year growth.

Atlanta, GA-based RPC is an oilfield service provider in almost all of the prospective plays, like the Rocky Mountain regions, Appalachian area, Gulf of Mexico and other resources in the United States. The Zacks Consensus Estimate for RES’ next quarter earnings indicates 33.33% growth.

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