Pioneering refinery Riograndense reveals plans for a renewable fuel project, leading global efforts to accelerate decarbonization
Founded in 1937, Riograndense Refinery (Riograndense) was the first refinery in Brazil. It has since formed one of Brazil’s main economic groups, the Ipiranga Group, which was acquired in 2007 by Braskem, Petrobras and Ultrapar. The company is currently undergoing an exciting biorefinery project, which will see it terminate fossil fuel production and begin producing from renewable feedstocks at the beginning of 2026.
Using soybean oil and technical corn oil, products will include Bio-LPG, Bio-naphtha, Light Cycle Oil, and Decanted Oil. It will be the first company worldwide to produce these in a Fluid Catalytic Cracking (FCC) unit with 100 percent renewable feedstock. Flávio Mingorance de Souza, Head of Biorefining at Riograndense, unveils more about the project and its role in Brazil’s decarbonization roadmap: “This transformation began at the end of 2022, when the decision was made to study the conversion of the FCC unit and to advance research into the production of Sustainable Aviation Fuel (SAF) and Hydrotreated Vegetable Oil (HVO). In October 2024, the Federal Government sanctioned the law that established national programs for Green Diesel and SAF, creating a clear regulatory framework for these new products and to attract investment.
“Our biorefinery project is included in the Federal Government’s Growth Acceleration Program and is one of the most advanced in Latin America, with a final investment decision expected in the first quarter of 2026. This will be essential for Brazil to meet its decarbonization mandates. In addition, we will also be exporting sustainable fuels to help with emission reductions in other regions.”
Growth in new markets
Flávio expands on the main two technologies Riograndense has implemented, enabling the biorefinery to operate with high flexibility and a low carbon footprint: “HydroFlex™, developed by Topsoe, allows us to process a wide range of renewable feedstocks such as soybean oil, animal fats, technical corn oil, cover crops and used cooking oil to produce high-quality renewable diesel and SAF that fully comply with ASTM standards.
“Meanwhile, H2Bridge™ optimizes the integration between the hydrogen production and hydro-processing units, ensuring maximum carbon efficiency by reusing process gases to generate low carbon hydrogen internally. This solution reduces emissions and minimizes the project’s dependence on external hydrogen supply. This is a key factor in lowering the carbon intensity of the entire operation and the sustainable fuels produced.”
He also highlights the installation of a feedstock pre-treatment unit, which is being included in the project to maintain technical and commercial flexibility for developing a wide supply of raw materials. The company has a strategy for sustainably sourcing these feedstocks, which strongly promotes the use of cover crops. “These crops are grown during winter, on land that is used only for agricultural purposes in summer and remains unused during the winter season, ensuring the sustainability of this feedstock,” explains Flávio.
“We believe in the potential of canola, camelina, carinata and safflower, and we intend to become structural buyers in these markets, which have enormous growth potential over the coming years, particularly in the state of Rio Grande do Sul and in Argentina. We are currently discussing long-term offtake agreements, ranging from five to ten years, to provide the necessary security for investment in the sector.”
With this in mind, Riograndense is taking steps to navigate any potential volatility in global markets as it transitions into renewables. The company plans to address these challenges through diversification, long-term commercial structuring and strong logistical positioning, Flávio outlines: “Our feedstock strategy mitigates risk by diversifying supply across vegetable oils, waste-based feedstocks, and cover crops. This approach reduces exposure to price fluctuations in any single commodity and strengthens overall supply security. We are also establishing long-term contracts with feedstock suppliers, which provide greater predictability for both procurement and revenues, while helping to build a more stable commercial ecosystem around the biorefinery.
“Furthermore, our location near the Port of Rio Grande offers significant commercial and logistical flexibility. It allows us to serve both domestic and international markets and quickly respond to arbitrage opportunities between Brazil, the US and Europe. Thanks to these attributes, we firmly believe that our project is the most competitive in Latin America and one of the most competitive in the world.”
Accelerating decarbonization
Being a significantly large-scale project, Riograndense is committed to hiring a workforce from Rio Grande and surrounding municipalities, with the refinery conversion generating thousands of direct and indirect jobs in the community. “Our initiatives focus on both immediate job creation during construction and long-term capacity building for ongoing operations,” says Flávio. “Once operational, the biorefinery will sustain highly qualified industrial jobs in operations, engineering, environmental management, laboratory analysis, logistics, and digital systems ensuring long-term socioeconomic impact for the region.”
Not only is it strengthening the local economy through employment initiatives, the biorefinery project represents approximately $1 billion in direct investment at the site, plus a further $ 1 billion across the state’s agricultural supply chain – especially through the expansion of cover crops. Flávio reveals the refinery has clear priorities for 2026 and beyond: “First, we plan to start up the FCC unit in the first quarter, marking our effective entry into the renewable chemicals and fuels market. Additionally, we’ll submit the project for final investment decision by our shareholders. With approval granted, our schedule foresees the beginning of construction in the second half of the year.
“In five years, we expect our company to be firmly positioned as one of the leading SAF producers in the Southern Hemisphere and a reliable supplier to the most relevant global markets. Overall, we aim to be the most competitive SAF project in Latin America and an international reference in large-scale, sustainable aviation fuel production.”
He remarks that Brazil now stands in a unique position, strengthened by the outcomes of COP30. “With vast areas suitable for sustainable agriculture, a highly developed agribusiness sector, and a long-standing tradition in biofuels, the country is ready to become a long-term, structural supplier of low-carbon fuels to the world,” concludes Flávio.
“We see this biorefinery not only as an industrial investment, but as a meaningful contribution to the global effort to accelerate decarbonization, generating positive economic, social, and environmental impacts throughout the region. Above all, we believe that the energy transition must be driven by optimism and ambition. By combining innovation, sustainability, and long-term partnerships, Brazil can help lead the future of cleaner aviation and inspire other regions to follow the same path.”
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