Acelen has secured $1.5 billion for its Brazilian green energy project.
The Mubadala-backed company confirmed the financing package on Saturday. The capital will fund the construction of a major sustainable aviation fuel (SAF) biorefinery in Bahia, Brazil.
Funding the Acelen Green Energy Hub
The $1.5 billion package marks a major milestone for the Abu Dhabi-backed developer. Acelen plans to build the facility next to its existing Mataripe refinery in Bahia. The site will focus on producing both sustainable aviation fuel and renewable diesel.
This project represents a major step in Mubadala Capital's international bioenergy strategy. The firm has steadily expanded its green portfolio over the last few years. Construction is scheduled to begin later this year, with initial production targeted for the coming years.
Sourcing Local Feedstock in Bahia
The biorefinery will use native Brazilian plants to produce fuel. Acelen plans to cultivate macauba, a high-yield local palm, across vast tracts of degraded land. This approach avoids using food crops for fuel production.
Local farmers will play a key role in the supply chain. The company expects the agricultural phase to create thousands of jobs in rural Bahia. Using macauba also helps restore degraded pasture land, providing a dual environmental benefit.
Meeting Global Demand for Sustainable Fuel
Aviation accounts for a significant portion of global emissions. Airlines are searching for reliable sources of SAF to meet international climate targets. The Bahia plant aims to supply both domestic and international aviation markets.
The facility will have a substantial daily production capacity. This output will help airlines significantly reduce their lifecycle emissions compared to conventional jet fuel. Mubadala Capital's investment aligns with global efforts to decarbonize air travel.
Supporting Abu Dhabi's Global Energy Footprint
The deal strengthens the economic ties between the UAE and Brazil. Mubadala Capital has invested heavily in Brazilian infrastructure, logistics, and energy over the past decade. This latest funding package solidifies its position as a major player in South American biofuels.
The project also reflects the UAE's broader commitment to international climate solutions. By backing large-scale biofuel production abroad, Abu Dhabi's investment arms are diversifying their energy portfolios. The Bahia biorefinery will serve as a blueprint for future international green energy joint ventures.
