Amazon Brazil has partnered with Brazilian petroleum corporation Petrobras to explore the use of low-carbon fuel solutions in logistics activities in Brazil.

First reported by Bnamericas, the two companies signed a Memorandum of Understanding (MoU) that set the parameters for potential opportunities that combine Petrobras’ experience in energy and low-carbon fuels with Amazon Brazil’s decarbonization efforts.

"Petrobras reinforces its commitment to investing in innovative, competitive, and affordable decarbonization alternatives. The partnership with Amazon seeks to generate relevant business opportunities for both companies, advancing along the path of decarbonization while also creating benefits for society and the environment," said Petrobras' director of Logistics, Commercialization and Markets, Claudio Schlosser.

Through the MoU, the partners will evaluate several opportunities. These include the development of low-carbon fuels certified by ISCC Plus - a sustainability certification scheme - or an equivalent, with a preference for residual feedstocks of low carbon intensity. In addition, the partners will explore pilot programs where low-carbon fuels can be integrated into Amazon's transportation network.

Finally, the companies will look at implementing market-based mechanisms, including book and claim systems, to allow for greater accessibility and affordability of low-carbon fuels for small and medium-sized enterprises in the logistics sector.

"This MoU represents an important step toward achieving our net-zero carbon emissions by 2040. Through it, we aim to develop innovative ways to advance our climate goals while evaluating opportunities to help Brazil decarbonize its transportation industry," said Ricardo Pagani, head of operations at Amazon Brazil.

"We believe that investments in low-carbon, waste-based feedstocks can enable farmers and agricultural cooperatives to transform their waste into valuable energy resources, potentially creating jobs in agricultural processing and fuel production. This approach could strengthen Brazil's energy independence, reinforcing its leadership position in the global bioeconomy," Pagani continued.

Petrobras produces several low-carbon fuel products. Its flagship product is R Diesel, which is produced by co-processing mineral diesel with vegetable oil or animal fat. According to the company, the process reduces up to 90 percent of greenhouse gas emissions in its renewable portion. Petrobas offers two R Diesel products, known as R5 Diesel, with five percent renewable content, and R10 Diesel, with 10 percent.

Amazon has been present in Brazil since 2011, following the launch of Amazon Web Services cloud region in São Paulo. It also lists Edge locations in Brazil in Rio de Janeiro, São Paulo, and Fortaleza. Plans for the latter emerged in 2021.

Last year, the company committed to investing 10.1 billion reais ($1.8 billion) in its Brazilian data center operations through 2034.