Brazil’s clean-fuel ambitions received a major financial lift after refinery operator Acelen, controlled by Abu Dhabi investment giant Mubadala Investment Company, secured $1.5 billion to kick off construction of a large-scale biofuels complex in Bahia.
The funding package brings together a consortium of 10 financial institutions, with HSBC and the International Finance Corporation — the private-sector financing arm of World Bank Group — leading the arrangement.
The refinery, planned for northeastern Brazil, is designed to become a major producer of sustainable aviation fuel (SAF) and renewable diesel. Commercial operations are targeted for 2029, with projected annual output reaching 1 billion liters.
The broader venture carries an estimated price tag of roughly $3 billion. Beyond refining infrastructure, the project also includes the cultivation of macauba, a Brazilian native oilseed viewed as a promising feedstock for low-carbon fuels. Acelen also intends to rely on soybean oil and recycled cooking oil as part of its raw material mix.
The initiative places Brazil deeper into the global race to expand SAF production as airlines and governments intensify pressure to cut aviation emissions without abandoning existing aircraft fleets.
