Brazilian energy company Acelen, backed by Abu Dhabi-based Mubadala, has secured USD1.5B to kick off construction of a biofuels refinery in Bahia, northeastern Brazil, the company announced on Thursday. Funding for part of the project will come from a consortium of 10 financial institutions headed by HSBC and the International Finance Corporation.
The refinery is scheduled to begin operations in 2029 and is projected to produce as much as 1 billion litres annually of sustainable aviation fuel (SAF) and renewable diesel.
The overall development is estimated to require nearly USD3B in investment. The project also includes the cultivation of macauba, a native Brazilian oilseed that will serve as a key raw material for biofuel production, alongside conventional feedstocks such as soybean oil and used cooking oil.
