Petrobras Taps Topsoe Tech for Major SAF & Renewable Diesel Plant in Brazil

Danish clean energy technology company Topsoe A/S has signed an agreement to provide its proprietary technology for a new biorefinery developed by Petróleo Brasileiro S.A. (Petrobras), Brazil's state-owned energy company. The facility, which will produce Sustainable Aviation Fuel (SAF) and renewable diesel, is planned for the Boaventura Energy Complex in Itaboraí, Rio de Janeiro. According to Topsoe, the plant is designed to process 1,000,000 tons of feedstock annually, positioning it to become one of the largest of its kind in Brazil.

The project represents a significant investment in Brazil's growing renewable energy sector and aims to address the aviation industry's urgent need for low-carbon fuels. By leveraging Topsoe's technology, Petrobras intends to solidify its role in the energy transition and support both domestic and international efforts to decarbonize air travel. The facility's output will directly contribute to meeting regulatory mandates and airline commitments for reducing carbon emissions.

Project Details and Technology

The core of the project is Topsoe's HydroFlex™ technology, a market-leading solution for converting a wide range of renewable feedstocks into drop-in fuels. The Petrobras plant is designed to process a flexible mix of materials, including various vegetable oils, waste materials, and animal fats. This approach aligns with the global trend of feedstock diversification, moving away from reliance on single-source virgin oils and utilizing more sustainable waste-based inputs. The production process follows the Hydroprocessed Esters and Fatty Acids (HEFA) pathway, a mature and certified method for producing high-quality SAF.

In an official press release, Topsoe confirmed the agreement and highlighted the project's strategic importance. Yassir Ghiyati, Chief Commercial Officer at Topsoe, commented on the collaboration: “We are honored to support Petrobras on this exciting project. By combining Petrobras' strong position in the Brazilian energy sector with Topsoe's leading HydroFlex® technology, this project could contribute meaningfully to the supply of SAF and renewable diesel in Latin America. It represents an important step toward strengthening fuel diversification in one of the world's most dynamic energy markets.”

Regulatory and Market Context

This development is timed to align with Brazil's strengthening environmental regulations. The country's 'Fuels of the Future' law established a National SAF Program that mandates a progressive reduction in CO2 emissions from domestic aviation. The program requires a 1% emissions reduction beginning in 2027, with the target increasing to 10% by 2037. This creates a stable, long-term domestic market for the SAF produced at the new Petrobras facility.

On the international stage, the project supports compliance with the International Civil Aviation Organization (ICAO) framework. Specifically, the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) requires airlines to offset CO2 emissions from international flights. SAF is the most viable tool for airlines to meet these obligations, driving substantial global demand.

The need for increased production capacity is clear. According to projections from the International Air Transport Association (IATA), global SAF production was expected to reach 1.9 million metric tons in 2025, nearly doubling the 1 million tons produced in 2024. IATA further projected that output would grow to 2.4 million metric tons in 2026. While this growth is significant, it still represents a small fraction of the total jet fuel demand, underscoring the necessity of large-scale projects like the one planned by Petrobras.

Outlook and Next Steps

While the agreement marks a critical milestone, the project's progression remains subject to a final investment decision (FID) by Petrobras and the receipt of all necessary regulatory approvals. The SAF produced via the HydroFlex™ process is classified as a 'drop-in' fuel, meaning it is chemically identical to conventional jet fuel and can be blended and used in existing aircraft engines and airport fueling infrastructure without any modifications. This compatibility is crucial for its rapid and seamless integration into the existing aviation ecosystem.

Why This Matters

This partnership between Topsoe and Petrobras is a pivotal development for the sustainable aviation fuel market in Latin America. It leverages Brazil's extensive experience and infrastructure in the biofuels industry to tackle the aviation sector's decarbonization challenge. The project not only supports national and international climate goals but also signals a major commercial-scale commitment to advanced biofuel production from a leading state-owned energy company, potentially creating a model for other nations.

Get breaking commercial aviation news and expert airline analysis at flying.flights. For detailed airline coverage, route changes, and fleet moves, explore the Airlines section at flying.flights/airlines.