Shell looking at expanding Brazil renewables business

Shell is studying opportunities for expanding its renewables business in Brazil, the firm's country manager André Araújo told reporters at an event in Rio de Janeiro on Wednesday.

According to Araújo, the Anglo-Dutch giant is studying both the auction of Eletrobras' special purpose companies, due to take place in September, as well as the next electric power generation auction, scheduled for August 31. Shell participated in an energy generation auction in Brazil in 2017, as the supplier for a thermo plant.

"We are looking at alternatives in multiple areas. The fact that we already participated in a power generation auction helped us develop knowledge about the electricity market and we feel comfortable to evaluate greenfield projects and acquisition opportunities," Araújo said.

Shell created a 10-person team about 15 months ago dedicated to studying renewable opportunities in Brazil, which is one of 10 countries chosen by the oil company for the development of energy transition plans.

"We're working on Brazil's plan now and we're looking at alternatives in wind power, solar power and gas. We don't want to engage in greenwashing, or only advertising, so any investment decision will be made on projects with economic viability," Araújo said.

Shell's chief energy advisor, Wim Thomas, who was also in Rio de Janeiro on Wednesday, said Brazil will play a big role in the world's energy transition, especially as an exporter of biofuels.

"There is an enormous role and responsibility upon Brazil to help the rest of the world to achieve a 2°C scenario. Because you have such incredible opportunities here with natural resources you can do that. It doesn't mean you should neglect the fossil fuel resources, both need to be in balance," Thomas said, referring to the Paris agreement goals.

Araújo confirmed that Shell will continue looking at opportunities in Brazil's pre-salt, which he believes to be more efficient than deepwater projects in other countries.