Petrobras, BNDES structure USD 100m fund for low-carbon businesses

Brazilian state-run oil and gas company Petrobras (BVMF:PETR4) and the Brazilian Development Bank (BNDES) have commenced studies to structure a corporate venture capital (CVC) fund to invest up to USD 100 million (EUR 92.5m) in renewable power and low-carbon businesses.

The idea behind the fund is to support small and medium-sized technology and innovation companies over the next five years, Petrobras announced on Wednesday.

Initially, they will identify the most promising sectors for this type of investment, considering issues related to the energy transition and which are aligned with the duo's long-term strategies.

This is the first fund between the oil company and the bank, and it will be set up following the local Securities and Exchange Commission (CVM) rules.

Petrobras' Director of Energy Transition and Sustainability, Mauricio Tolmasquim, noted that the fund will make it possible to foster innovative ideas and business models integrated with the company's innovation framework within the scope of its research and development projects.

(USD 1.0 = EUR 0.925)

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