Brazil to Host World's Largest Biogas Plant, Pioneering Sustainable Energy

The Louis Dreyfus Company (LDC) marks construction commencement of the world's largest biogas plant from citrus effluents, which is located in Bebedouro, São Paulo, Brazil. Covering an area of 195,000 square meters, the unit will be able to process 400 m³/h in effluents, create more than 50,000 Nm³ of biogas, and reduce CO₂ emissions at the local level by over 20%.

With this innovative technology from LDC, 100% reuse of treated water will be ensured while replacing fossil fuels. In the first half of 2026, the plant is expected to be in operation.

It is a measure through which LDC strengthens the commitment to decarbonize the supply chain and undertake sustainable development. The pilot project has already shown that that target was exceeded by 15 percent.

As one of the largest citrus juice processors and exporters, LDC goes on investing in green solutions for increasing efficiency and sustainability in the operations while minimizing environmental impacts and optimizing natural resource use.

Urca Group

The largest biomethane plant in Latin America is Gás Verde, a member of the Urca Group, in Seropédica, Rio de Janeiro. In this way, Brazil progresses toward becoming an increasingly important global player in the green economy.

The Seropédica plant refines biogas to produce biomethane, a fuel similar to natural gas derived from petroleum but with 80% lower emissions.

Petrobras (PETR3; PETR4) try to hold fuel prices, but gasoline and diesel will become more expensive in February

Petrobras is not expected to increase fuel prices in Brazil in the coming days. The board of the Brazilian state-owned company meets today to outline price plans for the coming weeks. However, due to the fall of the dollar in the last 10 days and the fear that the government has of an increase generating more inflation in the country, this adjustment should be delayed until March.

Yesterday, in a meeting with President Lula, the CEO of Petrobras, Magda Chambriard, said that at some point the company will have to readjust prices due to the lag in fuel prices (14% for gasoline and 11% for diesel) with international prices..

With the price changes established during the Lula government, Petrobras no longer automatically readjusts its prices to follow changes in the international oil market. Previously, Petrobras adopted an International Parity Price (PPI) policy adopted by Michel Temer's government and maintained by the Bolsonaro's government.

This policy led the company to constantly change fuel prices in the country. In 2021, with this policy, gasoline cost twice as much (more than R$ 11,00) as it costs today (R$ 6,19).

The previous pricing policy generated expensive fuel for the population and record profits for Petrobras shareholders. For many, this policy created by Temer increases shareholders' profits at the expense of Brazilian consumers, mainly because oil production in Brazil is not done in dollars, but in reais.

At the time, then-presidential candidate Ciro Gomes, who is also in opposition to the Lula government, commented:

“A barrel of Brent oil hit US$120 this morning, and they are going to transfer that”, said Ciro Gomes in 2022. 

Ciro argued that he had nothing "to do with the cost of Brazilian production, in real terms, with Russia's war in Ukraine”, for example, or with any other changes occurring in the international oil market given that a large part of oil production in Brazil takes place within the country.

This effort by Petrobras also comes as fuel prices are set to rise in February due to an increase in ICMS, a state tax levied by governors.

According to IstoÉ Dinheiro magazine, for gasoline, the tax collection is expected to increase by R$0.0979, from R$1.37 to R$1.47 per liter, which represents an increase of 7.14 %. For diesel, the ICMS will rise by 5.31% or R$0.0565, from R$1.0635 to R$1.12 per liter.

Brazil has an increase of 5.8% in the industrial sector in October compared to 2023

There has not been such a powerful rise in the Brazilian industrial sector for a long time. The sector's performance indicates that perhaps 2024 will be the year with the greatest industrial growth of the decade.

According to the Brazilian government, compared to the same month of October in 2023, industry production increased 5.8%, being the fifth consecutive month of expansion. The accumulated index for the year also increased (3.4%), as well as in the last 12 months (3.0%).

According to the Brazilian government, compared to the same month of October in 2023, industry production increased 5.8%, being the fifth consecutive month of expansion. The accumulated index for the year also increased (3.4%), as well as in 12 months (3.0%).

The concern is that import growth in the same period was 17%. 

The injection of income made through government programs produces, in turn, a large injection of demand in the country, which makes the Brazilian economy grow.

The fiscal push is very strong in Brazil. As Brazilian industry is not globalized, that is, it meets the country's internal needs more. With people having more money in their hands, the industry responds with growth and more investment. Domestic demand, driven by government programs, helps the industrial sector. 

Another factor that helps the industrial sector is the valued exchange rate. With the US$ worth R$ 6,00, companies with a greater presence in the global economy, such as Embraer, benefit because their products are very competitive internationally. 

Furthermore, the country has unemployment at a minimum. The country has the lowest unemployment rate in the last 13 years. This, in turn, produces inflationary pressure, which has been a concern for both the government and the financial market, which, in Brazil, is ideologically driven and, often, contrary to the government not for rational reasons, but for divergences. policies. Much of the Brazilian financial market.

It is common to see profiles of influencers linked to the financial market in Brazil harshly criticizing the PT and the Lula government while these same influencers praised the Bolsonaro's government and the decisions of the then Economy Minister Paulo Guedes.

Bolsonaro did not follow the country's spending control law, in fact, he exceeded this limit by R$795 billion in the 4 years of his government. The Brazilian financial market has never been as "nervous" as it is now, despite several positive economic indicators under the Lula government.

Who is Magda Chambriard, new president of Petrobras (PETR3; PETR4)

Magda Chambriard began her career at Petrobras. It was responsible for the first pre-salt auction and was closely related to the major global oil companies.

Chambriard worked for 22 years at Petrobras, where she began working in 1980. Between 2012 and 2016, Chambriard was the general director of the National Petroleum Agency (ANP).

Unlike her predecessor, Jean Paul Prates is a politician (Senator for PT for the State of Rio Grande do Norte). Chambriard is a technocrat and tends to follow President Lula's orders to the letter.

Therefore, she must follow the policy that the president defends, which is to transform Petrobras into a major investor to create jobs in Brazil and help recover the Brazilian economy.

Consequently, Petrobras should use its profits in the coming years to invest in, for example, a new naval industry in Brazil, thermoelectric plants, renewable energy, and the exploration of the Equatorial Margin, which is one of the last unexplored oil frontiers in Brazil. This region comprises the entire coastal strip to the north of the country and takes its name because it is close to the Equator.

Therefore, Alexandre Silveira and Rui Costas, two ministers from the Lula government emerged victorious. Both are lobbyists for thermoelectric plants, which should receive investments now.

The new president of Petrobras, who has already defended the privatization of Petrobras, must follow Lula's ideas. In the first speech she gave, Chambriard already defended the resumption, for example, of the naval industry in Brazil.

Petrobras (PETR3, PETR4) restarts works at the GasLub Hub, in Rio de Janeiro

Having been interrupted since 2015, the company restarted the work in Petrobras' GasLub complex.

On the 2nd, the company reactivated the contracting process to resume work in Itaboraí, in Rio de Janeiro.

The GasLub Complex, previously called the Rio de Janeiro Petrochemical Complex (Comperj), was designed for oil refining in Brazil. The government's idea is to help the country generate products with high-added value.

The entire project has been at a standstill since Operation Lava Jato, which discovered cases of corruption within the company and other companies with contracts at Comperj. However, the current government decided to reactivate all the work.

According to a statement from Petrobras, the set of units, when completed, will have the approximate capacity to produce 12 thousand barrels per day of Group II lubricating oils, in addition to 75 thousand B/D of S-10 diesel and 20 thousand barrels per day of aviation kerosene (QAV-1), with low levels of sulfur content.

The company's estimate is that the reactivation of the complex's works will generate up to 10 thousand direct and indirect jobs. 

Petrobras (PETR3, PETR4) was a highlight of the Brazilian Stock Exchange in April

The company which faced a drop in its shares in March, performed well in April after the decision to partially pay extraordinary dividends to its shareholders. This issue should continue to set the tone for its shares until the end of this year.

Petrobras reached the end of April with the biggest increases in the Ibovespa index, the main indicator of B3.

According to the website Infomoney, the Brazilian oil company's common shares ended April with an appreciation of 18.65%, while preferred shares increased by 15.57%. In the same period, the Ibovespa fell by 1.7% on a monthly basis.

Petrobras' decision on the payment of dividends almost generated a crisis in the Lula government, with the company's president Jean Paul Prates, and the minister of Mines and Energy Alexandre Silveira publicly debating the issue. The extraordinary dividends were withheld on March 19, when the company informed the market of the distribution of 50% of the amount, equivalent to R$22 billion. Petrobras also considered the possibility of distributing the other 50% throughout 2024. The new stance relieved investors who saw the risks of political interference give a respite.

After meeting, Petrobras (PETR3, PETR4) approves payment of 50% of extraordinary dividends

Petrobras' board of directors approved the payment of 50% of extraordinary dividends for 2023. The total dividends will correspond to 43.9 billion reais (approximately 8.5 billion dollars).

Last weeks, this issue has generated a crisis in the Lula government. The president of the state-owned company Jean Paul Prates, who is from PT, President Lula's party (center left), and the Minister of Energy, Alexandre Silveira, who is from the PSD of Minas Gerais, a right-wing party. According to Folha de S. Paulo, Petrobras also signaled additional distribution until the end of the year.

Petrobras (PETR3, PETR4) and Enarsa sign memorandum for partnership studies in the natural gas segment

Brazilian Petrobras and Argentine Enarsa signed a Memorandum of Understanding (MoU) on studies in the natural gas area.

According to Petrobras, the non-binding agreement has a term of three years. During this period, the two companies will exchange information and evaluate alternatives for energy cooperation and complementarity.

However, it still needs to be determined whether the plan will involve the export of gas in liquid format or whether the objectives of the two companies will be to put construction projects for new gas pipelines into practice.

The Brazilian newspaper O GLOBO revealed that the Lula government intends to import natural gas from the Vaca Muerta reserve, in Argentina. Perhaps, this MoU seeks to forward an understanding, including the technical aspects of this operation, between the two companies capable of guaranteeing the supply of Brazilian industries.

Agreement between Petrobras (PETR3, PETR4) and Brazilian government could end billion-dollar disputes

According to the newspaper Folha de S.Paulo, an agreement between the Brazilian government and Petrobras regarding legal disputes could cost between 12 and 15 billion reais, far from the initial forecast of 20 billion reais (around 4 billion dollars).

Petrobras must choose to pay this debt in installments with the Brazilian government through an agreement made with PGFN that aims to resolve subsidies that the oil company has with the Brazilian government. This should prevent the possibility of the company being left without a certificate of regularity, even if for just 24 hours, or that, in turn, impacting characteristics of Petrobras' international contracts.

This agreement, as well as any other that the company makes with the government, has a direct impact on the federal government's accounts.

However, according to Folha de S.Paulo, on April 8, "the company released a statement to the market saying that it was technically evaluating the draft conciliation notice placed for public consultation".

The company also stated that any decisions about those debts will follow “careful technical analyses". According to Petrobras, "facts deemed relevant will be disclosed to the market in a timely manner".

From slavery to modern struggles: a short journey through income inequality in Brazil

Brazil is one of the most unequal countries in the world. According to the Oxfam report, 63% of Brazil's wealth is in the hands of 1% of the population. The same survey shows that the poorest 50% own only 2% of the country's assets. In 2022, the average income of the 1% who earn the best in Brazil was 32.5 times greater than the average income of the 50% who earn the least, according to Piauí magazine.

To make matters worse, the COVID-19 pandemic has intensified inequality in the country. According to sociologist Marcelo Medeiros, the concentration of income in Brazil "is so great that a hypothetical distribution of half the income of the richest 1% would be enough to almost double the income of the poorest half of adults".

Read below a short summary of the history of inequality in Brazilian society:

Colonial Period (1500s-1800s): Brazil's colonial era was characterized by a highly unequal social structure based on slavery and genocide of the traditional population and land ownership. The Portuguese colonial rulers established large plantations worked by enslaved Africans, leading to extreme wealth concentration among landowners and elites while the majority of the population lived in poverty.

Abolition of Slavery and Industrialization (late 1800s-early 1900s): The abolition of slavery in 1888 marked a significant shift in Brazil's social dynamics. However, income inequality persisted as former slaves and their descendants faced economic marginalization. Industrialization during this period led to the emergence of urban centers and the growth of industrial sectors, but wealth remained concentrated among a small elite class.

Economic Growth and Urbanization (mid-20th century): The mid-20th century saw periods of economic growth and urbanization in Brazil, driven by industrialization and infrastructure development. However, income inequality remained high, with disparities between rural and urban areas and among different social groups.

Military Dictatorship (1964-1985): The military dictatorship era in Brazil, which lasted from 1964 to 1985, saw economic policies that favored wealthy elites and multinational corporations. This period contributed to widening income gaps and social unrest, particularly among marginalized communities and workers.

Democratic Transition and Economic Reforms (1980s-1990s): Brazil's transition to democracy in the 1980s and subsequent economic reforms in the 1990s aimed to address economic challenges, including inflation and debt. However, these reforms also led to increased income inequality as austerity measures and neoliberal policies disproportionately affected lower-income groups.

Social Programs and Poverty Reduction (2000s-present): In the early 2000s, Brazil implemented social programs such as Bolsa Família, which targeted poverty reduction and income redistribution. These programs, along with economic growth and rising education levels, contributed to reduced extreme poverty and improved income inequality indicators. However, income inequality remains a significant issue in Brazil. Factors contributing to ongoing income disparities include unequal access to education, healthcare, employment opportunities, land ownership patterns, racial and gender inequalities, and economic policies that may favor certain groups over others. Addressing income inequality continues to be a complex challenge requiring comprehensive social, economic, and political reforms.

Elon Musk vs. Brazilian Judiciary: a billionaire giving voice to the Brazilian far-right

Elon Musk decided to attack the minister of the Brazilian Federal Supreme Court, judge Alexandre de Moraes. 

In recent days, the owner of the platform X (formerly Twitter) has approached itself the Brazilian extreme right, which on January 8 attempted to carry out a coup d'état.

Paradoxically, Musk says that there is no freedom of expression in Brazil and that the orders to take down the accounts of those extremists who defended the end of the Democratic Rule of Law and the return of the military dictatorship in X would be a type of "censorship" and not defense of a democracy against agents who were openly attacking it.

The funny thing about this story is that Musk, who has factories in China and does business with Saudi Arabia, has never criticized these two countries for their lack of freedom of expression.

Elon Musk's messages on the platform actually served to regroup the far-right in Brazil and to give life to the theses contrary to democracy defended by this political sector. 

The billionaire, therefore, is working to help mobilize this far-right political forces in Brazil, which, after this clash, is already mobilizing a new act, called for by Bolsonaro, and which should bring together his supporters on the 21st in Rio de Janeiro.

Musk arrived on the scene at a time when Bolsonaro and the Brazilian extreme right were weakened, mainly due to the numerous accusations of corruption involving the former president, among them, the case of the jewelry that Bolsonaro allegedly received in Saudi Arabia (it is good to remember that the Saudis gave jewelry to Bolsonaro amid lobbying for Brazil in OPEC) — Bolsonaro could be indicted in the jewelry case, the penalty for the crime of embezzlement is 2 to 12 years in prison and a fine.

Musk's attacks on judge Alexandre de Moraes gave new strength to an right-wing extremist agenda that had been demobilized. It served to regroup certain bases of Brazilian far-right propaganda and gives voice to extremist and violent theories that mistakenly defend the that in Brazil we live in a dictatorship of the Judiciary. That is not true.