Acelen Renewables Secures $1.5 Billion to Build Billion-Liter SAF Project in Brazil
Acelen Renewables, the renewable energy company of Abu Dhabi-based sovereign wealth asset manager Mubadala Capital, announced that it has secured $1.5 billion to construct a renewable fuels biorefinery in the state of Bahia, Brazil.
Launched by Mubadala Capital at the COP28 conference in 2023, Acelen Renewables is developing an integrated ecosystem for renewable fuels production in Brazil, with a particular focus on producing sustainable aviation fuel (SAF) and renewable diesel from macaúba, a native Brazilian palm tree with high oil yield potential.
The company said that the new biorefinery, expected to begin operations in 2029, will have the capacity to produce 1 billion liters annually of SAF and Renewable Diesel (HVO). The facility will utilize HEFA (hydroprocessed esters and fatty acids) technology, which uses vegetable oils, waste oils, or fats as feedstock. The project integrates agricultural production, industrial development, and advanced fuel technologies to produce renewable fuels from both conventional feedstocks — such as soybean oil and used cooking oil and the macaúba palm tree.
Acelen Renewables said that it will cultivate approximately 144,000 hectares on degraded land, incorporating productivity gains already embedded in the project design, with 20% dedicated to partnerships with family farming operations and small-scale producers. The model seeks to combine productive land regeneration, social inclusion, and decarbonization, aligned with global best practices in sustainability and low-carbon development.
Leonardo Yamamoto, Partner at Mubadala Capital, said:
“Brazil combines unique conditions to lead the global energy transition, including agricultural scale, industrial excellence, and one of the cleanest energy matrices in the world. With a well-established presence in the country, Mubadala Capital strongly believes in Brazil’s potential to develop renewable fuels at scale — and is committed to being part of this journey.”
According to the company, integrated engineering for the project has already been completed, strategic contracts have been negotiated, and approximately 90% of planned SAF and HVO commercialization volumes have already been structured and contracted. The project also includes partners and commercial counterparties including Honeywell UOP, Alfa Laval, Construcap, Trafigura, Moeve, Bunge, and BGN.
International Finance Corporation (IFC), alongside HSBC, acted as global coordinator and lead arranger for the financing, with participating financial institutions in the financing consortium including First Abu Dhabi Bank (FAB), Abu Dhabi Commercial Bank (ADCB), IDB Invest, BNDES, Asian Infrastructure Investment Bank (AIIB), FinDev Canada, KfW IPEX-Bank, Bradesco, BBVA, and Bank of China.
Olaf Schmidt, IFC Regional Industry Director for Manufacturing, Agribusiness, and Services in Latin America and Europe, said:
By supporting one of Latin America’s first SAF facilities at this scale, we aim to demonstrate commercial viability, reduce investment risk, and lay the foundation for replicable investments across the region. Acelen Renewables’ project demonstrates how industrial innovation and sustainable development — including within the agribusiness sector — can reinforce one another, creating quality jobs, strengthening agricultural value chains, and accelerating Brazil’s transition to a more resilient economy.”
Luiz de Mendonça, CEO of Acelen Renewables, added:
“The structuring of this financing confirms the project’s technical, financial, and environmental robustness. We are now entering a new phase of large-scale industrial execution.”