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Brazil oil & gas and marine news highlights from DIT

01 March 2021

The following has been circulated by the Department for International Trade:

Market news & Intelligence

According to a global survey carried out by the World Economic Forum, in partnership with the consultancy Accenture, in Brazil, it is estimated that, in the next five years, investments in the solar and wind energy industry can generate more than 1.2 million new jobs, in addition to reducing the emission of greenhouse gases by 28 tons. The data were obtained from 25 global utility companies and technology companies focused on the electricity sector. The study shows that, in the coming years, Brazil will be marked by the expansion of non-hydroelectric renewable energies and modernization of the transmission system through "smart” networks and meters, among other technologies.[Estadão – Portuguese Only]

 

Spanish solar trackers manufacturer STI Norland will supply its equipment for a 78.4-MWp photovoltaic (PV) project in Brazil. The company signed an agreement with the customer, asset management firm Perfin, to send STI-H250 dual-row trackers for the Brigida project. According to STI Norland, the project will represent a Brazilian debut for dual-row trackers.[Renewables Now]

The Brazilian Development Bank has approved R$ 23.4 million (£ 3 million) in loans for the implementation of biogas projects capable of offsetting 154 tonnes of polluting gases annually. Specifically, BNDES will disburse BRL 13.3 million for a 8.7% capacity increase in a biogas vinasse plant located in the state of Goias and owned by local sugarcane company Albioma Codora Energia.[Renewables Now]

Brazil's installed onshore wind power capacity has reached 18 GWnational wind energy association Abeeolica announced. The country now has 695 operational wind parks, according to the association. Brazil will have at least 28 GW of installed wind power capacity by 2024, taking into account only contracts awarded through auctions.[Renewables Now]

Brazilian energy company Focus Energia planning to build a solar power complex in Bahia state for a total cost of R$ 2.2 billion (£ 290,4 million). The PV plants will be part of the Futura project and will be located in the town of Juazeiro. According to Focus Energia's IPO prospectus, the full Futura solar project will include 45 parks divided between Futura 1, Futura 2 and Futura 3/Apia, with a combined capacity of 3 GW. The company has already acquired 22 parks for a total capacity surpassing 671 MW and has an exclusive purchase option for the rest.[Renewables Now]

Voltalia SA has initiated the construction of its 99.4-MW Canudos 1 onshore wind farm in Brazil’s Bahia state. The power plant is part of the Canudos energy cluster, which offers a 1-GW potential, the renewable power plants operator said on Monday. Initially intended to have 90 MW of power generation capacity, the Canudos 1 plant will consist of 28 turbines of the G132-3.55 MW model totalling 99.4 MW.[Renewables Now]

With about 80% of its renewable energy matrix, Brazil is able to become a protagonist in the production and export of green hydrogen. At Siemens Energy, André Clark, general manager of the Brazilian operation, says that the company already negotiates in the country with industries interested in being pioneers in the use of green hydrogen, and should announce "soon” the first pilot projects.[Valor Econômico – Portuguese Only]

 

The brazilian biogas sector grew by 27% in 2020and escaped the crisis that affected several sectors of the economy due to the covid-19 pandemic. In all, 69 new plants started operating last year. According to Gabriel Kropsch, vice president of ABiogás (Brazilian Biogas Association), renewable gas is a reality not only in technical terms, but also in relevance. "We are talking about a replacement potential of up to 70% of all diesel oil consumption in Brazil. Biogas also generates savings between 20% and 30%, almost R$ 1 per liter of diesel equivalent ”.[epbr – Portuguese Only]

 

MME and ECB Group talk about green diesel. The ECB Group, one of the largest producers of biodiesel in Brazil, participated on February 9th in a meeting with the Secretariat of Petroleum, Natural Gas and Biofuels, of the Ministry of Mines and Energy (SPG/MME).The meeting dealt with advanced biofuels and the importance of their production for the current energy transition, as well as the need for investments in the ethanol fuel cell. The focus is the benefit that sustainable production and the existing infrastructure for the distribution of biofuels can bring to Brazil.[T&B Petroleum]

National Energy Policy Council (CNPE) proposes resolution establishing guidelines on RD&I in the energy sector. The goal of the resolution is to reinforce the prioritization on RD&I in seven themes: hydrogen, nuclear energy, biofuels, energy storage, technologies for sustainable thermoelectric generation, digital transformation and strategic minerals for the energy sector. Each of the themes has its importance and particularity and are crucial to the development of alternative methods to enable the energy transition process in Brazil towards a low-carbon economy. Based on Brazil's long-term strategy, outlined in the National Energy Plan 2050, it has defended the use of a wide range of solutions combining the advantages of the seven themes highlighted.[T&B Petroleum]

ANP and FGV Energia launch publication on decommissioning. The release of the "Offshore Decommissioning Notebook in Brazil - Opportunities, Challenges & Solutions"happened in the last week of January.The publication brings an in-depth diagnosis of decommissioning activity in Brazil, through the perspectives of different actors, and aims to address opportunities, challenges and solutions, as well as to clarify society about the possibilities of this activity in the country. According to the ANP Director-GeneralRodolfo Saboia"in Brazil, this industry is expected to turn over R$ 28 billion by 2025, between demolition and abandonment of wells, recovery of areas and removal of equipment". Watch the webinar recording of the launch event here[T&B Petroleum]

UN: Brazil is chosen as leader in debate on energy transitionBrazil was selected as the leading country in one of the central axes of the United Nations High Level Dialogue on Energy initiative. This UN programme was launched with the aim of identifying ways to accelerate progress towards the goal of providing clean, sustainable, reliable and accessible energy for all. Brazil is a leader in renewable energies and has the highest proportion of clean energy in the energy matrix among the major world economies (45% versus a global average of 18%). This is a demonstration of the brazilian efforts to the development of creative solutions for decarbonization, combining the advantages of sustainable bioenergy, hydroelectricity, solar and wind energy, in addition to nuclear energy, together with sources fossils with lower CO2 emissions, such as natural gas.[T&B Petroleum]

COVID-19 Business Support

The UK Government is taking targeted measures to support businesses in this difficult moment caused by the COVID-19 pandemic. More information can be found here.

Covid-19 Resources:

·COVID-19 business support website

·COVID-19 GOV.UK homepage

·DIT COVID-19 guidance for UK businesses

·COVID-19 guidance for employers and businesses

·PM statements

·Chancellor statements

·Travel advice

·Coronavirustransport and travel guidance

·Sign-upfor GOV.UK COVID-19 alerts

·Sign up to BEIS’ COVID-19 Business and Employer Bulletin

 

Businesses can find information on the transition period at gov.uk/transition (domestic) and great.gov.uk/transition (international).

Please get in touch if you need support from our team of experts in the UK and in the LATAC region. Contact details can be found at the end of this newsletter.

 

Upcoming Events

 

Virtual UK & Brazil: Partners in Energy8thEdition

15 - 19 March, 2021

Zoom

The UK & Brazil: Partners in Energy is a conference that aims to promote and strengthen the partnership between the UK and Brazil in the energy sector, through knowledge sharing, best practice, and commercial exchange. In its 8th edition, this year in a virtual version, the event will serve as a platform for British and Brazilian companies and government agencies to discuss the future of the energy sector, its challenges, opportunities, new technologies and solutions in areas of common interest. These areas include Offshore Wind, Distributed Generation, Low Carbon Navigation, Energy Transition and Biofuels.

 

The conference will host webinars on the following topics:

How offshore wind can be competitive in Brazil

•The future of distributed energy in the UK and Brazil

•The oil & gas industry towards a cleaner future

• Future challenges of IMO's agenda: how rules can be applied?

•Enabling an economic sustainable cycle for biofuels: the chain of custody of grains

Registration information will be circulated next week.

UK & Brazil: Partners in Energy 202– 9thEdition

October 2021 Belmond Copacabana Palace | Rio de Janeiro - Brazil

The UK & Brazil: Partners in Energy is an annual event that aims to promote and strengthen the partnership between UK and Brazil in the energy sector, through knowledge sharing, best practice and commercial exchange. It is a platform for British and Brazilian companies and government agencies to discuss the future of the energy sector, its challenges and opportunities, and to gain a deeper insight into regulatory frameworks, new technologies and solutions in areas of common interest.

More information to be released soon.

Export & Partnership Opportunities

DIT Team in Oil & Gas and Marine can help you navigate opportunities to help grow your business internationally. Here are some of the current export opportunities in the Brazilian market. The demand is out there. You should be too.

 

EXPORT

Brazil - Digital transformation guidance and improvement of organisational performance [Exporting is GREAT]

A company wants partners to help oil and gas companies to digitally transform, reduce costs and improve their performance. The closing date for bids is 08 April 2021.

 

Brazil - Floating production storage and offloading system (FPSO) operation services [Exporting is GREAT]

A major oil company has issued a tender for the chartering and provision of FPSO operation services.The closing date for bids is 15 March 2021.

 

PARTNERSHIP

The Brazilian Export and Investment Promotion Agency (Apex-Brasil) has launched the updated version of the catalogue Brazilian Petroleum Partnerships (BPP).The programme is designed to attract investments by fostering partnerships between Brazilian and foreign companies of the Oil & Gas sector, promoting the integration of Brazil into the global supply chain.

There are currently 47 Brazilian companies participating in the BPP programme, which are active in the following areas:

 

-Construction & Engineering

-Control System Engineering

-Decommissioning Operations

-Digital Solutions

-Engineering Services

-Environmental Solutions

-Financial Solution

-Logistic

-Operations & Management

-Oil Company Operator

-Operational Security

 

If your company is looking for a partner in Brazil with activity in any of these areas, please do let us know and we can send you more information or connect you with APEX Brasil. There is no cost involved.

 

The Brazilian Trade and Investment Promotion Agency (Apex-Brasil) works to promote Brazilian products and services abroad, and to attract foreign investment to strategic sectors of the Brazilian economy. You can find further information on their website here.

 

Exporting to Brazil

Thinking about exporting to Brazil?

Brazil is the fifth largest country in the world, with a population of approximately 190 million. Also, it is the world’s sixth largest economy and by far the largest in South America.

If you are thinking about exporting to Brazil, please read our "Brazil export overview” at:

http://www.gov.uk/government/publications/exporting-to-brazil/exporting-to-brazil

For additional information, please send us an enquiry. The DIT Energy Team is prepared to help you!