Abu Dhabi-backed energy company Acelen has secured approximately US$1.5 billion in financing to start construction of its flagship sustainable aviation fuel (SAF) and renewable diesel biorefinery in Bahia, Brazil, marking one of Latin America’s most ambitious low-carbon fuel developments. The project, led by parent investor Mubadala Investment Company through Mubadala Capital, is positioned to become a major export-oriented SAF asset serving Europe and North America as global aviation decarbonization policies tighten.
The US$1.5 billion secured enables Acelen to move into the construction phase of a new greenfield biorefinery adjacent to the existing Mataripe Refinery in Bahia state. The facility will produce sustainable aviation fuel and hydrotreated vegetable oil (HVO) renewable diesel using Hydrotreated Esters and Fatty Acids (HEFA) technology. It will leverage vegetable oils, waste oils, tallow and increasingly macauba feedstock cultivated in Brazil.
The development also forms part of Mubadala’s broader multi-billion-dollar plan to position Brazil as a global renewable fuels hub. Earlier plans outlined investments exceeding US$13 billion in Brazilian biofuels and energy transition infrastructure over the next decade.
Acelen Renewables SAF & Renewable Diesel Biorefinery Project in Brazil: Overview
The Acelen Renewables SAF & Renewable Diesel Biorefinery project is taking shape as airlines, fuel suppliers and governments intensify efforts to secure long-term SAF supply. This is ahead of stricter emissions mandates in Europe and emerging carbon reduction targets globally. Europe is also expecting start of operations at one of its largest second-gen sustainable aviation fuel developments, the Lighthouse Green Fuels Teesside SAF plant by 2030.
Brazil’s combination of agricultural scale, favorable climate conditions, existing refining infrastructure and export logistics also makes the country increasingly attractive for large-scale SAF production.
Additionally, Acelen’s strategy is centered on vertically integrated feedstock development, particularly the cultivation of macauba. Macauba is a high-yield native Brazilian palm crop capable of growing on degraded pastureland without driving deforestation. The company plans to develop large agricultural hubs in Bahia and Minas Gerais. This is while integrating digital traceability and lifecycle emissions tracking systems to meet European and U.S. sustainability certification requirements.
Once operational, the Acelen biorefinery will produce about 1 billion liters annually of renewable diesel and SAF. Export markets are also likely to absorb the majority of initial production volumes. According to company disclosures, a significant portion of anticipated SAF output has already been commercially pre-sold under preliminary agreements.
Acelen Renewables SAF & Renewable Diesel Biorefinery Project in Brazil: Fact Sheet
Location: Bahia State
Developer: Acelen
Parent Investor: Mubadala Investment Company
Estimated Total Investment: Approximately US$1.3-3 billion
Latest Financing Secured: US$1.5 billion
Technology: HEFA (Hydrotreated Esters and Fatty Acids)
Products: Sustainable Aviation Fuel (SAF), Renewable Diesel (HVO)
Planned Capacity: Approximately 1 billion liters annually
Primary Feedstocks: Macauba oil, vegetable oils, used cooking oil, tallow
Expected Operations: Around 2028
Export Markets: Europe and North America
Adjacent Infrastructure: Mataripe Refinery
Project Cost and Financing
The newly secured US$1.5 billion package provides a major milestone for the project following years of engineering studies, environmental structuring, and feedstock development planning.
Multilateral support has also emerged through institutions including IDB Invest, which approved financing support for the SAF platform in 2026.
The financing underscores growing institutional interest in SAF infrastructure as governments accelerate decarbonization frameworks for aviation. Additionally, economics of the Bahia project are strengthened by integration with existing refining and export infrastructure at Mataripe. This is expected to reduce capital need relative to standalone greenfield facilities.
Feedstock and Agricultural Development
One of the project’s defining features is its plan to set up large-scale macauba plantations. Acelen estimates that approximately 180,000 hectares could ultimately be developed to support feedstock supply chains. Studies conducted alongside FGV Europe also indicate the crop could create significant long-term rural income opportunities for small and medium-sized farmers in Brazil.
The company is also integrating blockchain-enabled traceability systems through collaboration with Finboot to ensure compliance with increasingly stringent international sustainability regulations.
Project Developers and Stakeholders
Developers and Sponsors
- Acelen
- Acelen Renewables
- Mubadala Capital
- Mubadala Investment Company
Financial Participants
- IDB Invest
Technology Traceability
- Finboot
Research and Agricultural Development
- FGV Europe
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