Brazilian petrochemical industry accelerates race for renewable energy

The Brazilian petrochemical industry has embraced the energy transition, either because of the more competitive costs of renewable energy today, or to reduce its carbon footprint and meet climate commitments for the coming decades.Considering the four large petrochemical companies operating in the country - Braskem, Dow, Unipar and Unigel - there are already at least R$5.3 billion considering long-term contracts for the purchase of solar and wind energy or investments in self-production announced since 2020 - and this figure will grow soon.Unipar already has two agreements of this nature (with AES Brasil and Atlas Renewable Energy) and intends to generate 70% of the energy it consumes in the country, all from renewable sources. Unigel, which has a partnership with Casa dos Ventos, and Dow, which has signed contracts with Casa dos Ventos and Atlas, are also studying new projects.With four partnerships in Brazil (with EDF Renewable, Voltalia, Canadian Solar and Casa dos Ventos), Braskem maintains its bet on the transformation of the power generation mix as one of the paths towards carbon neutrality by 2050. With the agreements, the largest thermoplastic resin maker in the Americas has contracted more than 100 average megawatts from solar and wind sources."We have improved our costs and turned the company more sustainable by increasing the share of renewable sources in the energy mix. This year, we already have 50% contracted and our goal is to reach 70% of renewable energy contracted for the Brazilian operation," said Unipar’s CEO Mauricio Russomanno.For the electricity companies, the petrochemical sector’s growing interest in renewable energy has been helping to make large projects feasible in the free energy market. The petrochemical companies are usually top tier customers for energy sales, and often serve as anchors, ensuring the bankability of the projects.In addition to the traditional PPAs (power purchase agreements), the industry has become increasingly interested in self-production arrangements. This model includes the creation of a partnership between the power generation company and the consumer, which brings additional advantages to the deal.Besides being able to reduce the cost of energy with a long-term contract - by becoming a self-producer - the consumer is also free from some sectorial charges. This makes the price of energy "unbeatable," said Rogério Jorge, head of customer relations at AES Brasil. "The benefit is so great...

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