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Acelen Renováveis, backed by Mubadala, is embarking on a significant initiative to make Sustainable Aviation Fuel (SAF) economically competitive with conventional jet fuel. The company's strategy centers on Brazil's indigenous macaúba palm, aiming to establish an integrated supply chain that could position Brazil as a global leader in low-carbon fuel production.
The macaúba palm, native to Brazil and adaptable across various biomes, is highly valued for its exceptional resilience, particularly in semi-arid regions, and its superior oil productivity. Acelen highlights that macaúba yields approximately ten times more oil per hectare than soybeans. Despite decades of study by Brazilian researchers, this species has seen limited commercial development until now, presenting a significant opportunity.
Acelen plans to construct a state-of-the-art biorefinery in São Francisco do Conde, Bahia state. This facility will be strategically located next to the Mataripe refinery, which Acelen acquired from Petrobras in 2021. Once fully operational, the biorefinery is projected to produce up to 1 billion liters (equivalent to 264 million gallons) annually of either SAF or hydrotreated vegetable oil (HVO). HVO, a renewable diesel, is chemically identical to fossil diesel and fully compatible with existing engine infrastructure.
The global demand for SAF is anticipated to surge as aviation decarbonization mandates come into effect worldwide. Brazil's own legislation mandates airlines to achieve emission reductions through SAF use, starting with a 1% target in 2027 and increasing by one percentage point each year until reaching 10%. Globally, the aviation sector aims for 10% SAF utilization by 2030 and net-zero emissions by 2050.
The primary obstacle to widespread SAF adoption remains its cost, which currently stands at least three times higher than conventional jet fuel. Victor Barra, Agribusiness Director at Acelen Renováveis, stated, 'A long-term solution, beyond mandates and subsidies that are difficult to sustain, requires a feedstock that is scalable, competitive and highly efficient.'
Barra emphasized that macaúba perfectly meets these criteria while offering substantial environmental advantages. The palm can be cultivated on degraded land, of which Brazil possesses over 100 million hectares (247 million acres), thereby preventing competition with food production. Acelen also anticipates benefiting from carbon credits once Brazil's regulated carbon market is implemented. The project is expected to reduce CO2 emissions by more than 80% compared to fossil fuels, alongside capturing up to 60 million metric tons of carbon in the soil.
The project represents a significant capital expenditure of $1.5 billion (approximately 7.6 billion Brazilian reais). This investment is being partially financed by a consortium of twelve financial institutions. Key participants include the International Finance Corporation (IFC), the private-sector lending arm of the World Bank, and HSBC, along with Brazil's national development bank BNDES, and the Inter-American Development Bank (IDB). Separately, HSBC has approved an additional 125 million reais in financing under Brazil's Eco Invest program, specifically dedicated to supporting macaúba plantations.
Construction of the biorefinery is currently underway, with commercial operations slated to commence in 2029. Until macaúba orchards mature and begin yielding fruit, projected around 2031, the facility will initially process used cooking oil and soybean oil. Following this period, the company intends to transition entirely to macaúba as its primary feedstock.
Mubadala Capital, the investment arm of one of the UAE's largest sovereign wealth funds, manages assets exceeding $430 billion. While maintaining investments in fossil fuels, Mubadala is actively expanding its renewable energy portfolio, viewing Brazil as a crucial strategic destination. Acelen has confirmed that approximately 90% of its planned SAF/HVO production has already been secured through contracts with customers in the United States, Canada, and Europe, even before the plant's startup.
The project further leverages existing logistics infrastructure through the Madre de Deus terminal, located approximately 11 kilometers (6.8 miles) from Mataripe. Future plans include the development of two new pipelines, an electricity transmission line, a natural gas connection, and enhanced water infrastructure.
Source: The AgriBiz