'Many Norwegian companies have significant opportunities in South America'

‘Brazil is leading the way in offshore field development, particularly in deep and ultra-deep waters. Alongside major investments in new production using floating platforms that will come online over the next five years, maintenance and decommissioning activities are also set to ramp up,’ says Thomas Conradi Granli.

He has headed our office in Rio de Janeiro since January 2023. Before that, he spent a decade working in Brazil's offshore industry, giving him in-depth knowledge of the Brazilian market and its business culture.

'South America is so vast that Norwegian companies from almost every sector come here: furniture manufacturers, water treatment companies, health technology companies and many others.'

Brazil is comparable in size to the US, but not all Norwegian companies consider South America a potential market. Granli believes more of them should.

‘With more than 200 million inhabitants, Brazil is home to almost half of everyone living on the South American continent. It has a huge consumer market!’

At our office in Rio de Janeiro, Granli works alongside four advisory colleagues. Together, they cover the whole of Latin America for us. They primarily help companies in the energy and ocean-based industries, including renewable energy, hydrogen, carbon capture, shipping, offshore technology and aquaculture. Smart cities, transport electrification, digitalisation and health technology are also growing sectors in South America.

‘We are now seeing growing demand for green ferry technology to reduce emissions from the transport sector. Offshore wind is also on its way, although progress remains slow for now. The electrification of the vehicle fleet is gathering pace too, creating significant demand for batteries and technology to stabilise the power grid, increase transmission capacity and expand charging infrastructure,’ Granli explains.

This is a highly promising time for Brazil's offshore and maritime sectors. The market is under pressure, creating strong demand for new technology that reduces supply chain emissions and decarbonises production.

- The market for offshore supply vessels is more or less sold out. State-owned oil company Petrobras has launched tenders for new vessels featuring green technologies such as battery-hybrid propulsion and shore power. The company is also actively exploring carbon capture and offshore wind and has announced several pilot projects in Brazil.

Brazilian operators are also at the forefront of digitalisation and new technology. Several Norwegian companies offering innovative digital solutions have already succeeded in Brazil, and autonomous and unmanned vessels are now emerging as an area with significant potential.

Under Brazilian law, substantial revenues from oil production are channelled into research and development. We organise an annual research conference called the November Conference, bringing together a broad range of researchers and research institutions from both countries.

- The November Conference has become a cornerstone of research collaboration between Norway and Brazil. Several Norwegian start-ups have emerged from activities linked to the conference. Its focus has traditionally been offshore oil and gas, but the conference is now shifting towards the energy transition and renewable energy.

Read more about the November Conference

Despite the current optimism in Brazil's oil and gas sector, the country is also investing heavily in a range of renewable energy sources and in decarbonising industry and transport.

- South American countries have some of the world's best onshore solar and wind resources. Bioenergy is also an important sector in Brazil. Most vehicles use so-called flex-fuel engines, which can run on fuel containing 100% ethanol. Biogas also has significant potential in Brazil. In addition, both Brazil and Chile are exploring hydrogen for export and use in domestic industry.

Brazil has a vast agricultural sector and imports large quantities of fertiliser. Yara has a strong presence in the region, and there is potential to use zero-emission inputs to decarbonise production.

The aquaculture industry also offers significant opportunities for Norwegian companies. Chile is the world's second-largest exporter of salmon, and Norwegian suppliers have a strong presence in the local value chain.

Brazil currently consumes 9.5 kg of fish per capita each year. Aquaculture offers significant potential to increase the supply of fish, and fish farming is growing rapidly. Brazilian companies are therefore looking for technology and services across the entire value chain, including expertise in genetics, fish health, fish feed and machinery.

– Brazil mainly produces tilapia. This involves different technologies and business models from salmon farming, but some Norwegian suppliers have an opportunity to establish a position in the market. Given the country’s high salmon consumption, land-based farming could be an option if it proves successful in other countries. For example, São Paulo is a city of around 20 million people, many of whom are descendants of Japanese immigrants. The city has a strong sushi restaurant culture and therefore consumes a great deal of salmon.

More than 200 Norwegian companies already have operations in Brazil, employing thousands of local people across the country. Almost all major Norwegian state-owned companies have a presence here.

'Here in Brazil, Norwegian companies employ nearly 20,000 Brazilians. Sweden is the only country in the world where Norwegian companies employ more people.'

In other words, Brazil is one of the largest investment destinations for Norwegian companies. According to Granli, there are also significant opportunities for medium-sized companies. Brazil is open to other cultures, and Norwegians receive a warm welcome.

‘Norway has a good reputation here, which opens many doors. At the same time, there is a fair amount of bureaucracy, and the language is Portuguese, which few Norwegians speak. That is where we can help.’

Chile and EFTA recently concluded negotiations on an updated trade agreement. As South American countries generally have fairly protectionist policies and high tariffs, favourable trade agreements make a significant difference to exports of Norwegian-made goods. Norway also has favourable tax treaties with several countries in the region to prevent double taxation and provide good conditions for delivering services and transferring profits from subsidiaries.

– The new trade agreement with Chile will create more opportunities to export to the country. We also hope that the trade agreement between EFTA and Mercosur will be finalised this year. It would be a game changer for exports of goods to Brazil and Argentina!

Read more about exporting to Brazil