Oil players Petrobras and Equinor want to exploit giant offshore wind 'frontier' in Brazil
Fossil giants to assess feasibility of seven projects that could see 14.5GW installed
Petrobras and Equinor are considering installing up to seven offshore wind farms in Brazil with the potential to generate up to 14.5GW.
The Brazilian and Norwegian oil & gas giants have signed a letter of intent to evaluate the technical, economic, and environmental feasibility of the sites, which could lead to investments of about $70bn.
The agreement comes as Latin America's largest economy is trying to recreate offshore the success of its onshore wind farms. Equinor's experience in offshore wind in Europe and the US, coupled with Petrobras strong standing in Brazil's energy sector and the economy at large are likely to give a push to the country's offshore wind sector that has been promising for years, but was very slow to take off.
In addition to those two projects, the new agreement includes a feasibility study examining potential wind farms in Mangara, Ibitucatu, Colibri, Atoba and Ibituassu – all off Brazil's northeastern and southern coasts.
The feasibility study for the seven wind farms is set to run until 2028 and can be renewed depending on how viable the projects are. It will likely take between six and 12 years before any project is operational.
“These are feasibility studies and any further investment will depend on the in-depth analysis of [the offshore wind projects’] feasibility, as well as regulatory changes necessary to enable the government to authorise these activities,” said Petrobras chief executive Jean Paul Prates.
“This agreement will pave the way for a new frontier of clean and renewable energy in Brazil. It makes the most of our country’s significant offshore wind potential.”
Before being appointed as the Petrobras boss, Prates was a senator in Brazil’s Congress and drafted and sponsored bills proposing a regulatory framework for offshore wind and associated green hydrogen projects.
Petrobras and Equinor already partner at several oil and gas projects in Brazil, including the Roncador field and the BM-C-33 pre-salt development in the Campos basin.
“Equinor and Petrobras have a long history of successful partnerships. We are actively working together to achieve an offshore wind generation capability and Brazil’s energy transition,” stated Equinor chief executive Anders Opedal.
“This will establish the initial conditions necessary to develop renewable energy in a sustainable way”.
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