Brazil greenlights Bahia refinery license and approves Petrobras $1.2 bn Cubatão biofuel project

Brazil Refinos received environmental approval to build a new refinery in Simões Filho, Bahia. The plant will have an annual capacity of 99,500 barrels of crude and is slated to start operations in the first half of 2026, producing diesel, gasoline, solvents and other products while creating thousands of direct and indirect jobs.

Petrobras' board approved a US$1.2 billion (R$6 bn) investment for a renewable‑fuel complex at its Cubatão refinery in São Paulo. The project will enable production of up to 15,000 barrels per day of bio‑aviation kerosene (bioQAV) and renewable diesel, with commissioning expected by 2030. The initiative aligns with Petrobras' strategy to expand low‑carbon bioproducts as part of Brazil’s energy transition.

Both projects are part of a broader push to expand refining capacity and introduce cleaner fuels in Brazil's oil sector.