Topsoe and Petrobras to Develop Major SAF Facility in Brazil

Ujjwal Sukhwani
By Ujjwal SukhwaniPublished Feb 28, 2026 at 07:30 PM UTC, 4 min read

Aviation News Editor & Industry Analyst delivering clear coverage for a worldwide audience.

Topsoe and Petrobras to Develop Major SAF Facility in Brazil

Topsoe will supply its HydroFlex technology for a new Petrobras Sustainable Aviation Fuel (SAF) facility in Brazil, one of the largest in the country.

Key Takeaways

  • Partners with Petrobras to build a major SAF and renewable diesel facility in Brazil.
  • Utilizes HydroFlex technology to process 1,000,000 tons of diverse feedstock annually.
  • Supports Brazil's new ProBioQAV mandate requiring a 1% CO2 reduction by 2027.
  • Represents a key part of Petrobras' US$600 million BioRefining Program investment.

Danish technology provider Topsoe has signed an agreement to license its HydroFlex™ technology to Petróleo Brasileiro S.A. (Petrobras) for a major new biorefinery in Brazil. The facility will be dedicated to producing Sustainable Aviation Fuel (SAF) and renewable diesel, processing up to 1,000,000 tons of renewable feedstock annually. This project represents a significant step in developing Brazil's domestic SAF production capabilities, aligning with new national mandates for aviation decarbonization.

The planned facility will be located at Petrobras' Boaventura Energy Complex in Itaboraí, Rio de Janeiro. It is designed to convert a mix of feedstocks, including vegetable oils, waste materials, and animal fats, into SAF and renewable diesel, also known as Hydrotreated Vegetable Oil (HVO). The project is currently subject to a Final Investment Decision (FID) and requisite regulatory approvals before construction can commence. According to a press release from Topsoe, this facility is expected to be one of the largest of its kind in Brazil upon completion.

Regulatory and Strategic Context

The development is directly supported by Brazil's recently established regulatory framework aimed at fostering a domestic biofuel market. In October 2024, the Brazilian government enacted Law 14,933/24, the "Fuels of the Future Law," which created the Programa Nacional de Combustível Sustentável de Aviação (ProBioQAV). This national program mandates that airlines operating domestic flights reduce their carbon emissions by 1% beginning in 2027. The requirement progressively increases, reaching a 10% reduction target by 2037.

This domestic mandate complements international obligations. Starting in 2027, Brazilian airlines will also need to comply with the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), an initiative by the International Civil Aviation Organization (ICAO) to stabilize CO2 emissions from international flights. The availability of domestically produced SAF is critical for airlines to meet these dual regulatory pressures.

For Petrobras, the project is a cornerstone of its broader energy transition strategy. The state-owned energy corporation's 2023-2027 Strategic Plan allocates US$600 million for its BioRefining Program, which aims to position the company as a leading supplier of sustainable fuels. This investment reflects a strategic pivot toward lower-carbon energy sources in response to global market trends and environmental goals.

Market Impact and Global Trends

The Topsoe-Petrobras partnership enters a rapidly growing global SAF market. According to the International Air Transport Association (IATA), global SAF production is projected to nearly double from 1 million metric tons in 2024 to 1.9 million metric tons in 2025. IATA further forecasts production to reach 2.4 million metric tons in 2026, highlighting the urgent demand for new production capacity worldwide.

By leveraging Topsoe’s established HydroFlex™ technology, Petrobras can accelerate its entry into the market. The technology is designed for flexibility, allowing producers to use a wide range of renewable feedstocks, which is consistent with the industry trend toward feedstock diversification to ensure supply chain resilience.

Yassir Ghiyati, Chief Commercial Officer at Topsoe, commented on the significance of the agreement. “We are honored to support Petrobras on this exciting project,” he stated. “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.”

What Comes Next

The project's progression now hinges on Petrobras reaching a positive Final Investment Decision. Following the FID and securing all necessary regulatory permits, the engineering, procurement, and construction phases will begin. While a specific timeline for the plant's operational start has not been disclosed, it will be a key asset for meeting the initial 2027 ProBioQAV deadline. The successful launch of this facility will be a critical test of Brazil's ability to scale its biofuel industry and meet its ambitious decarbonization targets.

Why This Matters

This agreement marks a pivotal moment for Brazil's aviation and energy sectors. It operationalizes the country's new SAF mandate by creating a large-scale domestic supply source, reducing reliance on potential future imports. For the aviation industry, it provides a tangible pathway to compliance with both national (ProBioQAV) and international (CORSIA) emissions reduction targets, while positioning Petrobras as a key player in the global energy transition.

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Ujjwal Sukhwani

Written by Ujjwal Sukhwani

Aviation News Editor & Industry Analyst delivering clear coverage for a worldwide audience. Covers flight operations, safety regulations, and market trends with expert analysis.

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