Brazilian state-owned oil company Petrobras on Tuesday announced an agreement with French companies Total and Total Eren to work together in developing solar and wind energy in Brazil.
In a press release, Petrobras said that the companies signed a memorandum of understanding that would "dilute the risk associated with renewable energy in Brazil and offer potential gains in scale."
Since 2015, Petrobras has discarded its businesses unrelated to the company's core production of petroleum, gas and fuels. Factories producing fertilizers and petrochemicals have been closed while the company has attempted to gain a footing in the renewable and solar energy markets.
Petrobras, together with other companies, jointly own four winds farms that generate 104 megawatts of energy, including a solar energy investigation center in the northeastern state of Rio Grande do Norte.
Last year, Petrobras and Total announced a petroleum exploration and production partnership, as well as the exchange of technologies.
The French company has two solar energy subsidiaries that cover a variety of needs, from the production of solar panels to the operation of wind farms.
Total Eren, which focuses on renewable energies, was founded after Total bought a 23 percent of Eren Renewable Energy in 2017.
According to Petrobras, the agreement formed part of the strategy to "develop high value renewable energy businesses in association with global actors, endorsing the transition to a low-carbon matrix."