Brazil advances $500 million fund for biofuels and energy transition
Finep, Petrobras and BNDESPAR moved a R$500 million venture fund into its next phase, with biofuels among the target bets and room for about 15 companies.
Finep, Petrobras and BNDESPAR on June 23 advanced a R$500 million fund for energy transition and decarbonization, moving the vehicle into opportunity identification and evaluation with biofuels among the target bets.
The Investment Fund in Holdings, or FIP, is being structured as a corporate venture capital vehicle to buy minority stakes in Brazilian startups and micro, small and medium-sized technology companies with validated minimum viable products and growth potential. Its target areas also include renewable power, e-fuels, low-carbon hydrogen and derivatives, carbon capture, utilization and storage, energy storage, e-mobility and decarbonization of operations.
The fund will back about 15 companies over a term of up to 12 years. The vehicle targets startups and MPMEs with validated solutions and initial recurring revenue. A public call launched on June 4, 2025 drew 32 proposals by the July 31, 2025 deadline.
Petrobras will commit up to R$250 million, capped at 49% of the fund. BNDES will invest up to R$125 million, limited to 25%, and Finep will put in R$60 million from the National Fund for Scientific and Technological Development, or FNDCT. Valetec was chosen in first place in October 2025 to manage the fund, ahead of the Ahead Ventures and Aecom consortium and Lightrock. The next step is final negotiations and legal due diligence before the first investments flow.
The fund is one of the actions under a technical cooperation agreement signed in June 2023 to create the BNDES-Petrobras joint commission, which covers oil and gas, scientific research, energy transition and decarbonization, productive development and governance. BNDES president Aloizio Mercadante said the effort is meant to mobilize capital markets to speed clean-tech investment and energy security. Petrobras director Renata Baruzzi said the company wants to accelerate sustainable and inclusive solutions, while Finep president Luiz Antonio Elias said the fund reinforces Finep’s role in innovation and aligns with the Nova Indústria Brasil agenda. Finep financial director Marcio Stefanni said the sector lacks this kind of funding and the partnership addresses a market need.
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