Lula says Brazil can become “Saudi Arabia” of renewables

President affirms in Hannover that country has land and technology to lead global energy transition without giving up oil

The president (PT) said, on Monday (April 28, 2025), that Brazil has the conditions to become a kind of “Saudi Arabia of biofuels”. The statement was made during a press conference alongside German Chancellor Friedrich Merz, in Hannover, at the opening of the city’s Industrial Fair. Brazil is the partner country for the event.

Lula used tests carried out with Brazilian biodiesel in a Daimler Truck truck to make his argument. According to the president, national renewable fuel can reduce CO₂ emissions by up to 90% compared to fossil fuel. “Let’s demystify the prejudice against biofuel produced by Brazil”he said.

This Sunday (April 19), the president that to EU does not create barriers to Brazilian biofuel..

In this 2nd speech on the topic, he spoke about criticism that the production of biofuels would compete with food. According to him, Brazil has 40 million hectares of degraded land to be recovered and suitable for the cultivation of oilseeds, without the need to deforest new areas.

Lula declared that Brazil is also an oil exporter, but has been investing in alternatives for decades. He cited the creation of Proálcool, in the 1970s, and the advancement of the biofuels sector in the 21st century as evidence of the national trajectory.

According to him, 89% of the Brazilian electrical matrix is ​​already renewable, and 53% of total energy, including fuels, comes from renewable sources. The number is above the European Union’s 40% target set for 2050.

“We decided to demystify the prejudice that people try to place on renewable fuel produced by Brazil. (…) The concrete fact is that we have to defend the alternatives that the world needs to be found, which is decarbonization. That’s why I’m an uncompromising supporter of biofuels.”he declared.

Merz stated that his visit to Brazil for COP30, in Belém, opened his eyes to the potential of biofuels and that the German government should not bet on a single technology for decarbonization.

“We have more than 1 billion combustion cars on the world’s roads, and this will not be solved with electric cars alone”said the chancellor.

LULA IN HANNOVER

Still at the press conference, Lula also criticized ongoing wars and called for reform of the United Nations Security Council. He declared that he was against any military intervention in Cuba and reiterated his support for South Africa’s participation in the G20.

The meeting resulted in bilateral agreements in the areas of defense, artificial intelligence, quantum technologies, bioeconomy and energy efficiency. Germany announced a contribution of 500 million euros to the Climate Fund. The entry into force of the Mercosur-European Union agreement is scheduled for May 1st and is one of the trip’s assets.

Hannover is part of a 5-day European agenda. Lula and passed through Barcelona, ​​where he completed the 1st Brazil-Spain Summit, before arriving in Germany. On Tuesday (April 21, 2026), the president will go to Lisbon.