Yinson Holdings Bhd, a major player in Malaysia’s energy sector, is poised to boost its investments in Brazil’s energy landscape with ambitious plans for wind farms in the northeastern region. The company anticipates a substantial boost pending final approval from the Brazilian government, which would greenlight their proposed renewable energy projects.
Group CEO Lim Chern Yuan highlighted the significance of Brazil as Yinson’s largest market, citing the ongoing deployment of nine floating production, storage, and offloading (FPSO) vessels, three of which are already operational. The successful commissioning of FPSO Anna Neary last year and the upcoming delivery of two more FPSOs this year underscore Yinson’s commitment to expanding its foothold in Brazil.
In addition to offshore ventures, Yinson is making strides in renewable energy. The company has secured land and regulatory approvals for wind farms, projecting an investment of up to US$500 million upon receiving final investment decision (FID) clearance. The combined installed capacity of these wind projects could reach 486MW, contributing significantly to Brazil’s renewable energy matrix.
Yinson’s expansion aligns with Brazil’s robust renewable energy sector, which boasts a leading position globally with 55% of its energy derived from sustainable sources. This move underscores the company’s strategic shift towards sustainability amidst global energy transitions.
The development comes amidst growing bilateral trade and investment collaborations between Brazil and Malaysia, particularly in the energy sector. Malaysian firms, including Yinson and Sapura Energy Bhd, are actively involved in the development of Brazil’s energy resources, including the Atlanta deepwater oil field in the Santos basin.
Brazilian Ambassador to Malaysia Ary Norton de Murat Quintella highlighted the increasing trade ties between Brazil and ASEAN nations, surpassing traditional partnerships within the Mercosur bloc. He emphasised the pivotal role of the energy sector in fostering mutual investments and enhancing bilateral partnerships between Brazil and Malaysia.
As Yinson awaits regulatory clearance for its wind projects, opportunities continue to expand for Malaysian companies in Brazil’s energy sector. The Brazilian Embassy in Malaysia remains committed to facilitating partnerships and promoting investments in oil and gas, renewable energy, and biofuels between the two countries.
