MUBADALA CAPITAL UNIT TO PRODUCE CLEAN FUEL IN BRAZIL
▶ Acelen will invest $2.5 billion over next 10 years in Bahia state project
Mubadala Capital’s energy company Acelen will invest $2.5 billion in the next 10 years to produce renewable diesel and sustainable aviation kerosene in the north-eastern Brazilian state of Bahia.
The move is expected to help in meeting the growing global demand for clean fuels.
Acelen, which owns the Mataripe Refinery in Bahia, plans to start production in the first quarter of 2026, the company said on Sunday night. Mataripe is Brazil’s second-biggest refinery and one of its oldest.
“We will produce sustainable fuel on a global scale, inserting Brazil in the development of the international sustainable chain,” said Acelen chief executive Luiz de Mendonca. “This will be Acelen’s first project in renewable fuels. So, there is room for us to grow globally ...”
The company will mainly focus on selling products to foreign markets initially, where it expects more demand.
“If Brazil moves forward with discussions already under way regarding incentive policies for the production and consumption of renewable fuels in the country, Acelen will be ready to act in the domestic market as well,” Mr de Mendonca said.
The move is part of an initial agreement signed between Acelen and the government of Bahia during the official state visit of Brazilian President Luiz Inacio Lula da Silva to the UAE.
The UAE’s investments in Brazil have increased to $5 billion as the Emirates continues to deepen its trade and economic ties with Latin America’s largest economy, Abdulla bin Touq, Minister of Economy, said on Sunday.
Major UAE companies such as DP World, Emirates, First Abu Dhabi Bank, Yahsat and Mubadala Investment Company are among the major investors in Brazil.
The two countries are currently collaborating in strategic sectors, including industry, transport, shipping, storage, infrastructure, construction, port management, energy, mining, banking and property, Mr bin Touq said.
Brazilian exports to the UAE stood at $714.07 million in the first quarter of this year while its imports from the UAE were about $ 357 million, the Arab-Brazilian Chamber of Commerce said yesterday.
Mubadala Capital, the asset management subsidiary of Abu Dhabi’s sovereign wealth fund Mubadala, created Acelen to operate Mataripe Refinery and its related logistics assets.
In 2021, Mubadala bought the refinery and logistics assets, then known as Landulpho Alves Refinery, from Brazil’s state oil company Petrobras for $1.65 billion.
Mubadala Capital manages $ 17 billion in assets, of which $13 billion are managed through third-party capital vehicles. It oversees two funds in Brazil focused on special opportunities, as well as a series of co-investment vehicles, special-purpose vehicles and continuation funds, according to its website.
The latest clean fuel project in Bahia is expected to generate a billion litres annually, inject $17.3 billion into the Brazilian economy, create 90,000 jobs and reduce carbon emissions by up to 80 per cent by replacing fossil fuels, Acelen said.
“Acelen’s energy transition story began at the very start of operations with the refurbishment of Mataripe Refinery in Bahia and the subsequent reduction of the plant’s environmental impact,” Mr de Mendonca said. “We are now taking a strategic step forward in our mission to play a leading role in energy transition by implementing a unique and transformative project.”
During the first stage of the project, Acelen will use soyabean oil and other raw materials, in line with Brazil’s agricultural potential, it said.
In the second stage, expected to begin in 2025, the company will use palm oil and macauba oil, a native Brazilian tree oil with high energy potential that has yet to be fully explored on a commercial scale, it said.
Overall, an area of 200,000 hectares will be planted, with priority given to degraded areas. The project will capitalise on the existing utilities, tanking and logistics infrastructure at Mataripe Refinery.
A sustainable hydrogen generation unit will be built for the fuel hydrotreatment unit and construction will begin in January, Acelen said.
Daily processing capacity is expected to reach 20,000 barrels of renewable fuels, the equivalent of a billion litres a year, enough to supply 1.1 million vehicles, Acelen said.
Initially, production of green diesel and sustainable aviation fuel (SAF) will focus on supplying international markets, where these products are already approved for commercialisation and consumption.
The International Air Transport Association ( Iata) estimates that SAF could account for about 65 per cent of the reduction in emissions needed by the aviation industry to reach its goal of net zero by 2050.
Achieving the target requires a massive increase in production to meet demand. The largest boost in production is expected in the 2030s as government support becomes global, SAF becomes competitive with fossil kerosene and credible offsets become scarcer, Iata said.
Acelen plans to invest in genetics, productivity improvements and in selecting suitable areas with high-energy value plants. It will build an industrial-scale seed germination laboratory and invest in research.
Acelen, which owns the Mataripe Refinery in Brazil’s Bahia state, plans to start production in the first quarter of 2026