UAE’s Mubadala Capital plans to invest $2.4 billion (12 billion reais) over 10 years to build a green diesel and sustainable aviation kerosene factory in Brazil
The investment will be made through Mubadala Capital backed-Acelen unit in Brazil’s northeastern state of Bahia where Acelen owns the Mataripe Refinery.
“This agreement underscores the strong partnership between Brazil and the UAE, specifically in the energy sector, as well as our commitment to Brazil, a country we’ve been investing in since 2012,” Mubadala said in a tweet.
The MoU focuses on the development of alternative renewable fuels in the State of Bahia by Acelen, the Brazil-based asset of our wholly-owned subsidiary @MubadalaCapital.
— Mubadala (@Mubadala) April 16, 2023
Renewable fuel production: The project aims to produce biodiesel and sustainable aviation kerosene from vegetable oils and animal fat, in a process known as hydrotreating. With this approach, Acelen’s CEO Luiz de Mendonca said the company will generate “sustainable fuel on a global scale,” strengthening Brazil’s position as a critical player in the advancement of global sustainable supply chain.
- Acelen expects to start production in the first quarter of 2026.
- The biorefinery production capacity will be 20,000 barrels per day. It will produce one billion liters of renewable fuels every year, enough for an annual supply of 1.1 million vehicles.
- It will reduce carbon emissions by up to 80% by replacing fossil fuels
- Create 90,000 direct and indirect jobs.
Acelen initially plans to use soybean oil and other raw materials as the primary sources. However, in the second stage, set to commence in 2025, the company plans to shift towards using palm oil and macauba oil, a native Brazilian tree oil, according to Acelen.
The agreement was signed during the state visit of Brazil’s President Luiz Inacio Lula da Silva to Abu Dhabi where he was received by the UAE President Sheikh Mohamed bin Zayed Al Nahyan.
Fizemos uma importante visita aos Emirados Árabes, com acordos que vão fortalecer o desenvolvimento de nossos países. Pude também convidar o presidente @MohamedBinZayed para visitar o Brasil, e sei que ainda vamos avançar em nossas relações. 🇧🇷🇦🇪
— Lula (@LulaOficial) April 16, 2023
🎥: Audiovisual/PR pic.twitter.com/jDhXhd7KCN
“I return to the country 20 years later to reinforce the relationship between Brazil and the United Arab Emirates,” Lula wrote on Twitter. “The Emirates is the country in the region that invests the most in Brazil, will host the COP28 this year, and will expand investments in biofuels and renewable energies.” In another tweet, Lula wrote that he returns to Brazil after signing deals worth 12.5 billion Brazilian reais (BRL) with UAE and BRL 50 billion with China.
UAE is Brazil’s top trading partner in the Arab region and is among the largest international investors with an estimated US$5 billion in Emirati investments in Brazil, according to UAE officials. Abdullah bin Touq Al Marri, the UAE’s Minister of Economy, said that the Brazilian president’s visit has injected “new impetus” into the Emirati-Brazilian partnership.
