Brazil's Petrobras approves plan to build 15,000 b/d SAF, biodiesel plant at RPBC refinery

The board of directors at Brazilian state-led oil company Petrobras approved the final investment decision to build a plant to make renewable sustainable aviation fuel and diesel at the RPBC refinery in Sao Paulo state, according to Petrobras.

"Petrobras will advance to the final phase of hiring and contract signing with this approval," Petrobras said in a filing submitted to local stock regulators after markets closed June 19. "The start of construction work is expected to start by the end of 2026."

The plant will have an installed capacity to produce 15,000 barrels/day, Petrobras said. The plant will produce SBC, or synthetic blending components, used to produce SAF as well as renewable diesel from hydrotreated vegetable oil, or HVO. The primary raw material will be vegetable oils and animal fats, with installed capacity to process up to 950,000 metric tons each year.

Petrobras launched the first tenders for the project in August 2025, dividing construction and engineering work into five separate packages of contracts, according to the company. The first package included units to process and treat raw materials needed to remove impurities, which included storage tanks for soybean oil, animal fat and processed liquids.

The contracts are expected to be signed in the second half of 2026, Petrobras said.

The final approval of the renewable fuels plant marked Petrobras' latest advance in projects aimed at increasing the company's role in Brazil's transition to a low-carbon energy environment, especially in the production of next-generation biofuels such as biodiesel and SAF. Petrobras' initial efforts focused on adding renewable material to existing hydrocarbon-based diesel and jet fuel via co-processing units.

The renewable fuels production is in line with commitments made by Brazil under the country's "Fuel of the Future" program launched in 2023. Under the program, aviation companies in Brazil were required to meet the Carbon Offsetting and Reduction Scheme for International Aviation's targets to reduce carbon dioxide emissions from international flights starting in 2027.

Petrobras also plans to start operations at the RPR Refinaria Riograndense in Rio Grande do Sul state in the second half of 2026, according to the company. The 17,000 b/d refinery is currently being converted to full renewable biofuels production in partnership with petrochemicals maker Braskem and Ultrapar.

First certified SAF delivery

Petrobras delivered the world's first-ever lot of SAF made from soy that received CORSIA Low ILUC Risk certification from the International Civil Aviation Organization on June 17, according to the company. The certification guarantees that the soybean used as raw material to produce the fuel was not linked to deforestation or indirectly encouraged deforestation.

The lot totaled 3,800 cubic meters and contained 1% renewable composition, Petrobras said.

The fuel was produced at Petrobras' REDUC refinery outside Rio de Janeiro and sold to Vibra, Petrobras' former fuels-distribution unit, Petrobras said. The soybean oil used to produce the SAF was supplied and certified as compliant with CORSIA Low ILUC Risk requirements by Bunge.

Petrobras made its first-ever deliveries of SAF wholly produced in Brazil in December 2025, when 3,000 cubic meters of the fuel were delivered to the international airport in Rio de Janeiro, according to the company. That SAF delivery was also produced at REDUC, but used corn oil as the primary raw material and contained 1.2% renewable content.

In addition to the dedicated plant at RPBC, Petrobras is already producing or plans to start SAF production at several other refineries. Petrobras expects to produce SAF at the REPLAN refinery in Sao Paulo state and the REGAP refinery in Minas Gerais state in 2026. The REVAP refinery in Sao Paulo state, meanwhile, produced SAF in September 2025 as part of test runs that utilized the co-processing of vegetable oil with crude oil.

Petrobras currently has installed capacity to produce about 74,000 cubic meters of so-called Diesel R, which contains renewable content from co-processing, according to the company.

Sales of Diesel R5, which contains 5% renewable content obtained from co-processing regular diesel with raw materials such as soybean oil, started in 2022 at RPBC and the REPAR refinery in Parana state in 2024, according to the company. Diesel R5 has about 60% lower carbon emissions compared with regular ULSD. The REDUC refinery in Rio de Janeiro state and the REPLAN refinery in Sao Paulo state also have equipment installed that can produce Diesel R5.

Tests to increase the renewable portion of Diesel R to 10% started in 2025, according to Petrobras.