Brazil will soon witness a green energy revolution as Acelen, backed by Mubadala Capital, gears up to invest a staggering 12 billion reais ($2.44 billion) over the next decade to produce eco-friendly diesel and jet fuel. Production is set to begin in 2026, catapulting the company to the forefront of global leadership in this sector, top executives informed Reuters.

By January 2024, construction on the novel biorefinery is expected to commence. It will boast the ability to generate 1 billion liters of hydrotreated vegetable oil (HVO) annually, a renewable diesel-like fuel derived from vegetable oils and animal fats, free of fossil resources.

This endeavor further solidifies Brazil’s position as a key supplier of renewable fuels, leveraging the nation’s abundant natural assets. The country is already a notable producer of soy-based biodiesel and ethanol from sugar and corn.

Acelen’s new biorefinery will take advantage of existing infrastructure at the Mataripe plant, including tankage, logistics, and the port terminal for exporting new fuels, shared Marcelo Cordaro, Acelen’s vice president of new business. Mubadala acquired the Mataripe plant, which constitutes 14% of Brazil’s oil refining capacity, from state-run Petroleo Brasileiro (PETR4.SA) in 2021.

Soyoil will initially be the primary raw material for the plant, potentially making Acelen the largest individual purchaser of the commodity in Brazil. Up to 900,000 tonnes of soy oil will be required annually, with additional consumption of 100,000 to 150,000 tonnes of corn oil and animal fat.

On Saturday, Acelen signed a memorandum of understanding with the government of Bahia state in Abu Dhabi. In the beginning, the company expects to export all its renewable fuel production, as domestic sales are not yet possible due to lacking regulation in the Brazilian market.

Aiming to become a global powerhouse, Marcelo Lyra, Acelen’s vice-president of institutional relations, communication, and ESG, stated, “We want to be a global player… we already have the competitiveness to operate abroad.” As Brazil’s market evolves and starts supporting green fuels, Acelen is eager to participate in the domestic market as well.