Acelen Secures $1.5B From Mubadala for Its Bahia Biorefinery
Brazil · Energy Transition
Key Facts
—The funding: the Acelen biorefinery secured $1.5 billion to start construction in Bahia, the energy arm of Abu Dhabi’s Mubadala Capital.
—The output: from 2029 the plant will make 1 billion liters a year of sustainable aviation fuel and renewable diesel.
—The lenders: a consortium led by HSBC and the IFC groups 10 institutions, including Brazil’s development bank, Abu Dhabi banks and Bank of China.
—The total: the full project carries a $3 billion investment, with Mubadala eyeing up to five plants worth as much as $13.5 billion.
—The feedstock: the plant uses the native macauba palm, which yields far more oil per hectare than soy, alongside soybean oil and animal fat.
—The driver: Brazil’s future-fuel law sets aviation emission-cut targets rising from 1% in 2027 to 10% by 2037, anchoring demand.
Gulf capital is betting big on Brazilian green fuel. Mubadala’s Acelen has locked in $1.5 billion to break ground on a Bahia biorefinery, the first step in a plan that could eventually top $13 billion.
What does the Acelen biorefinery involve?
The Rio Times, the Latin American financial news outlet, reports that the Acelen biorefinery secured $1.5 billion to begin construction in São Francisco do Conde, Bahia. Acelen Renováveis is the energy arm of Mubadala Capital, the Abu Dhabi investment group.
The plant sits at the industrial complex tied to the Mataripe refinery, the country’s second largest, which Mubadala bought from Petrobras in 2021. From 2029 it will produce 1 billion liters a year of sustainable aviation fuel and renewable diesel using HEFA technology, a leading global route for renewable fuels.
Who is financing it?
Part of the funding comes from a consortium led by HSBC and the International Finance Corporation, the World Bank’s private-sector arm, grouping 10 national and international institutions. They include Brazil’s development bank, First Abu Dhabi Bank, Abu Dhabi Commercial Bank, BID Invest, the Asian Infrastructure Investment Bank, FinDev Canada, KfW IPEX-Bank, Bradesco, BBVA and Bank of China.
The breadth of lenders signals international confidence in Brazil’s low-carbon industrial potential. The full project carries a $3 billion price tag, and Mubadala has said it aims to replicate the model in up to five units, with investment that could reach $13.5 billion over the coming decade.
Why macauba and why Bahia?
The project is built around the macauba, a native Brazilian palm with an oil yield per hectare many times higher than soy. Acelen plans to combine it with soybean oil and animal fat to feed the plant, and has begun planting on a model farm in the state to test productivity before scaling up.
Brazil offers a rare mix of agricultural scale, industrial capacity and one of the world’s cleanest power grids, the company argues. That combination, executives say, positions the country to become a global hub for fuels used in aviation and heavy transport, with output aimed at Europe and the United States.
Why does it matter for investors?
Demand is underpinned by Brazil’s future-fuel law, which sets mandatory emission-cut targets for airlines rising from 1% in 2027 to 10% by 2037, mirroring strict global mandates in Europe and under international aviation rules. A study cited by the company estimates the integrated chain could move up to $40 billion through the Brazilian economy.
For investors, the deal is another marker of Gulf capital deepening its footprint in Latin America, this time in the energy transition rather than defense or trade. It also signals that large-scale sustainable-fuel projects can attract development banks and commercial lenders together, a template others may follow as the sector matures.
What should investors and analysts watch next?
- Construction: whether the plant hits its 2029 start-up target.
- Macauba supply: whether the native palm scales to commercial volumes.
- Expansion: whether Mubadala moves toward its five-plant ambition.
- Offtake: export contracts for jet fuel into Europe and the US.
- Policy: how Brazil’s future-fuel mandates ramp through 2037.
Frequently Asked Questions
How much did Acelen secure?
Acelen Renováveis secured $1.5 billion to begin building its Bahia biorefinery, part of a full project costing about $3 billion.
What will the plant produce?
From 2029 it will make 1 billion liters a year of sustainable aviation fuel and renewable diesel, using HEFA technology at the Mataripe refinery complex.
Who owns Acelen?
Acelen is controlled by Mubadala Capital, the Abu Dhabi investment group, which also operates the Mataripe refinery bought from Petrobras in 2021.
What is macauba?
Macauba is a native Brazilian palm with an oil yield per hectare many times higher than soy, used as a key feedstock for the plant’s renewable fuels.
Why is demand growing?
Brazil’s future-fuel law sets airline emission-cut targets rising from 1% in 2027 to 10% by 2037, anchoring long-term demand for sustainable aviation fuel.
Connected Coverage
The financing advances the plan tracked when Mubadala committed $13.5 billion to Brazil’s future energy. It fits the wider shift detailed in our Brazil renewable energy 2026 guide, and the strategy explored in our look at Brazil’s billion-dollar bet on biofuels.
Reported by Sofia Gabriela Martinez for The Rio Times — Latin American financial news. Filed May 21, 2026 — 16:00 BRT.
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