The implementation of biofuels in Oil Firms; Unlocking a path dependency and steering towards a more sustainable trajectory?
Mr Nelson Mojarro Gonzalez, SPRU, University of Sussex Biofuels can be used either as an additive or as a fuel substitute having different implications for oil firms. This paper focuses on the use of ethanol by oil firms and examines how and why ethanol has been employed by oil companies, and how this might lead to a (technological) shift in a historically path dependent technological system towards a potentially more sustainable trajectory. The article analyzes the case of the major Brazilian oil company, Petrobras and argues that after decades of complying the highest ethanol blending mandate in the world, the Brazilian oil firm, has until recently has until recently enter biofuel upstream activities, potentially unlocking its oil-only based path dependency. Oil firms are almost the sole providers of motor fuels and “the infrastructure necessary to provide fuels can be identified as a path dependent large technological system. This system has since the early 20th century employed the same raw material (crude oil) to produce its main process refining output, motor gasoline. The vast majority of oil firms in this system Read more…Unlocking-a-path-dependency-The-case-of-Brazilian-ethanol-implementation-in-Petrobras.pdf 1.21 MB