Acelen Renewables $1.5B Biorefinery Project in Bahia Brazil

This article is based on an official press release from Acelen Renewables and supplementary market research.

Acelen Renewables, the renewable energy arm of Abu Dhabi’s sovereign wealth fund Mubadala Capital, has officially announced a US$ 1.5 billion investment to construct a large-scale renewable fuels biorefinery in Bahia, Brazil. Announced on Thursday, May 21, the project marks a significant milestone in the global energy transition and positions Brazil as a central hub for low-carbon Electric-Aviation and transport fuels.

According to the company’s press release, the facility is scheduled to begin commercial operations in 2029. Once online, the plant will have the capacity to produce 1 billion liters, approximately 20,000 barrels per day, of Sustainable Aviation Fuel (SAF) and renewable diesel (HVO) annually. The facility will be located in São Francisco do Conde, Bahia, adjacent to the existing Mataripe Refinery.

The project is backed by a historic consortium of 12 national and international financial institutions, signaling strong global market confidence in Brazil’s capacity to deliver competitive, large-scale climate solutions.

Project Scope and Financial Structure

A Landmark Consortium

The US$ 1.5 billion investment specifically covers the construction phase of the biorefinery, though supplementary research indicates the total investment for this first integrated unit, including a 10-year agro-industrial development plan, will exceed US$ 3 billion. According to project data, the capital stack consists of US$ 650 million in equity provided by Mubadala Capital, with the remaining US$ 850 million financed through a 5.5-year project finance debt structure.

As detailed in the company’s announcement, the syndicated loan is supported and led by the International Finance Corporation (IFC) and HSBC. The broader consortium includes a diverse array of global lenders: First Abu Dhabi Bank (FAB), Abu Dhabi Commercial Bank (ADCB), IDB Invest, the Brazilian Development Bank (BNDES), Asian Infrastructure Investment Bank (AIIB), FinDev Canada, KfW IPEX-Bank, Bradesco, BBVA, and Bank of China.

“We believe that transformative projects require long-term vision, international cooperation, and a commitment to lasting positive impact.”

Technological and Agricultural Innovation

HEFA Technology and the Macaúba Advantage

The Bahia plant will utilize Hydroprocessed Esters and Fatty Acids (HEFA) technology, which is currently the most proven and widely adopted pathway for renewable fuel production globally. While the facility will initially be flexible enough to process feedstocks like soybean oil and Used Cooking Oil (UCO), the project’s long-term strategic differentiator is the cultivation of macaúba, a native Brazilian palm tree.

Research reports highlight that macaúba yields up to 10 times more oil per hectare than traditional soybeans. Acelen Renewables plans to plant 180,000 hectares of this native palm exclusively on degraded pasturelands across Bahia and Minas Gerais. This approach is designed to regenerate soil health without competing with food production.

Breakthroughs in Agritech

The commercial viability of macaúba is the result of significant agricultural research and development. Historically, macaúba seeds exhibited a natural germination rate of only 3% to 5%. Through the Acelen Agripark, a US$ 60 million (R$ 314 million) innovation center, and Partnerships with institutions like Embrapa, the company developed protocols that achieved up to an 80% germination rate. This scientific milestone unlocks the potential for commercial-scale cultivation of the plant.

Global Export Strategy and Socioeconomic Impact

De-risking Through Off-take Agreements

Despite pending domestic SAF regulations in Brazil, Acelen Renewables has commercially de-risked the project by looking outward. Market data reveals that 90% of the facility’s future production is already contracted to clients in the United States and Europe. Because SAF and HVO are “drop-in” fuels, they require no modifications to existing aircraft or heavy transport engines, making them highly sought after in markets with strict emission reduction mandates.

Local Regeneration and Job Creation

The environmental and social impacts of the project extend well beyond fuel production. SAF and HVO reduce CO2 emissions by up to 80% compared to traditional fossil fuels. Furthermore, because the cultivation of macaúba captures carbon in degraded soils, Acelen projects the overall lifecycle of the fuel to be “net-negative” in carbon emissions.

On the socioeconomic front, the company has integrated social inclusion into its supply chain. Through its “Programa Valoriza,” 20% of the macaúba supply will be sourced via partnerships with family farmers and small producers, providing a new economic lifeline for communities in semi-arid regions. The broader integrated project is expected to generate up to 90,000 direct and indirect jobs over the coming years.

AirPro News analysis

We view Acelen Renewables’ final Investments decision as a watershed moment for the Latin American biofuels sector. By securing 90% of its off-take agreements in the US and Europe, Mubadala Capital successfully bypassed the regulatory waiting game regarding Brazil’s domestic SAF mandates. This export-driven Strategy allowed the consortium to confidently deploy US$ 1.5 billion in capital today.

Furthermore, the domestication of the macaúba plant represents a critical leap in sustainable feedstock supply. The jump from a 3% to an 80% germination rate is a prime example of how targeted agritech investments can unlock massive energy transition bottlenecks. If Acelen successfully executes this first facility, it paves the way for its broader vision: a total of five biorefineries in Brazil with an estimated cumulative investment of US$ 12.5 billion.

Frequently Asked Questions

What is SAF?

Sustainable-Aviation Fuel (SAF) is a liquid fuel currently used in commercial aviation which reduces CO2 emissions by up to 80%. It can be produced from a number of sources (feedstock) including waste oil and agricultural residues.

When will the Acelen Renewables biorefinery open?

Construction is expected to take approximately two and a half years, with commercial operations scheduled to begin in 2029.

Why is macaúba important to this project?

Macaúba is a native Brazilian palm that produces up to 10 times more oil per hectare than soybeans. It can be grown on degraded pasturelands, meaning it does not compete with food crops while simultaneously helping to regenerate the soil and capture carbon.

Sources

• Acelen Renewables Press Release