Saudi Arabia’s Public Investment Fund (PIF) is contemplating a substantial investment of $15 billion, indicating a strong vote of confidence in Brazil’s clean energy sector. Brazil’s Energy Minister Alexandre Silveira announced this development on Wednesday.

Silveira said discussions about the potential investment were held during meetings between PIF officials and the Brazilian government. The investment focus areas encompass green hydrogen, infrastructure development, and renewable energy projects.

While no specific timeline for these investments was disclosed, the announcement underscores Saudi Arabia’s increasing interest in Brazil’s expanding green energy sector. This potential investment builds on prior collaborations between the two countries. In April, a joint venture between Saudi Arabia’s PIF and the Saudi Arabian Mining Company acquired a 10% stake in the base metals unit of Brazilian mining giant Vale.

Moreover, a subsidiary of PIF has formed a joint venture with Brazilian meat processor BRF to produce poultry products in Saudi Arabia, indicating a broader spectrum of economic cooperation between the two nations.

Further solidifying their bilateral relations, the Saudi government announced on Tuesday its plan to establish an investment ministry office in Sao Paulo to enhance trade and business interactions between the two countries.

This announcement was made during the Brazil-Saudi Arabia Conference, which convened a delegation of about 70 Brazilian business leaders and government officials. Deputy Investment Minister Ibrahim Al-Mubarak and the ministry’s executive director, Waleed Al-Rubaie, represented the Saudi side. The conference agenda also featured a visit to the Saudi Public Investment Fund, underscoring mutual efforts to foster economic cooperation and investment opportunities.

Joao Doria Neto, president of the Brazilian business group LIDE, who led the Brazilian delegation, highlighted the “solid commercial relationship” between the two nations, emphasizing the potential for “successful partnerships” given their $6.7 billion bilateral trade volume in the previous year. Neto stated that the conference “provided valuable insights into the numerous opportunities for bilateral business.”