Wind

Oil giants Petrobras and Equinor eye one of world's largest offshore wind farms in Brazil

State-controlled company says it and Norwegian group will 'evaluate feasibility' of 4GW Aracatu in Campos Basin

Petrobras' green agenda has been far from clear.
Petrobras' green agenda has been far from clear.Foto: Getty/Getty Images

Brazilian state-controlled oil group Petrobras could join Equinor in building one of the world’s largest offshore wind farms, the Aracatu project of 4GW.

Petrobras and the Norwegian energy group are “jointly evaluating the environmental feasibility of the project”, said a statement from the Brazilian company.

Equinor had already in 2020 filed for an environmental permit to build the 4-4.7GW at Aracatu project in two phases — each consisting of 160 12-16MW turbines on monopile foundations in water depths of 15-35 metres — in the Campos Basin, 20km off the southeastern states of Rio de Janeiro and Espírito Santo.

Petrobras’ sustainability director Rafael Chaves said: “Brazil's potential for offshore wind power generation brings promising opportunities for diversifying the country's energy matrix.”

Although Petrobras and Equinor signed a memorandum of understanding (MoU) over potential offshore wind joint development as long ago as 2018, the Brazilian oil player’s energy transition strategy has been far from clear over the last few years during the rule of the notoriously renewables-sceptical Brazilian president Jair Bolsonaro.

It retreated from early investments in onshore wind and as recently as the end of 2020 its now former chief executive was saying it had no plans to make large scale investments in wind and solar.

Petrobras in April this year appointed Jose Mauro Coelho, a former secretary for oil, gas and biofuels at Brazil’s Mines & Energy Ministry, as its third CEO within 18 months.

Equinor is already a major global offshore wind force thanks to its early moves in Europe — where it is building the 3.6GW Dogger Bank, the world's largest under construction — and pioneering role in the US.

An Equinor spokesperson told Recharge: “Equinor sees high potential for offshore wind in Brazil, a market with a long Equinor history and a strong growth outlook. Together with Petrobras, we will jointly evaluate the potential to develop Aracatu I and Aracatu II offshore wind projects. Combined the two projects could have a total potential capacity of 4GW.”

Big-hitters position around Brazil

Petrobras and Equinor are among a clutch of oil and power giants positioning to tap Brazil’s massive offshore wind potential, even though the regulatory basis for the sector is still undefined and the commercial case complicated by an abundance of cheap onshore renewable power.
The potential to tap offshore wind for green hydrogen production is seen as a major plus for the sector’s prospects in a nation with big plans to become a global H2 hub.
Shell in March said it would start environmental studies for a potential 17GW of offshore wind in Brazil, while global renewables giants Iberdrola and Engie-EDPR offshore wind JV Ocean Winds are among others with interests in development there.

The country’s federal environmental authority Ibama is already appraising licenses for about 30 projects which add up to over 130GW in capacity.

In January, Brazil’s executive branch published a decree that offers acreage through concessions to parties following consultation with other government entities.
Note: Update adds Equinor comment
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Published 19 May 2022, 09:13Updated 19 May 2022, 11:51
BrazilAmericasPetrobrasEquinor