Petrobras Board Approves RPBC Bio-Jet Fuel FID

Petrobras (NYSE: PBR) on June 19 said its board had approved the final investment decision for the RPBC Biorefining project at the company's Presidente Bernardes Refinery in Cubatão, São Paulo. The project centres on a dedicated bio-jet fuel production unit.

The decision locks in capital spending for a facility designed to produce Sustainable Aviation Fuel (SAF) from renewable feedstocks. Petrobras has positioned biorefining as a pillar of its lower-carbon strategy, alongside its existing biofuels operations and carbon-capture projects.

The RPBC project follows an earlier greenlight from the board for preliminary engineering studies. AlphaScala covered that initial step in Petrobras Greenlights Bio-Jet Fuel Plant at RPBC Refinery. The company has not yet disclosed the project's total investment, target capacity, or expected start-up date.

Petrobras, Brazil's state-controlled oil producer, has been under pressure from investors to diversify its revenue stream beyond crude exports and domestic fuel sales. The SAF market, while nascent, is growing as airlines and regulators push for lower emissions. Brazil's National Biofuels Policy (RenovaBio) provides a regulatory framework that supports such investments, though the project will also face the usual construction and feedstock-cost risks.

The board's sign-off comes as Petrobras reports strong free cash flow – $6.8 billion in the first quarter – giving it financial flexibility for this type of medium-term capital outlay. The company's PBR stock page shows an Alpha Score of 60, reflecting a moderate risk-reward profile in the energy sector.

For now, the project remains in early stage. The board approval is a necessary but not sufficient condition for timely execution. Delays in equipment procurement, licensing, or feedstock logistics could push the timeline. Investors tracking Petrobras' transition beyond oil will watch for detailed capex guidance in the next quarterly release.