Brazil SAF plans moved forward on Thursday after Brazilian refiner Acelen said it secured $1.5 billion to begin construction of a biofuels refinery in the northeastern state of Bahia. The company, owned by Abu Dhabi sovereign investor Mubadala Investment Company, said the financing will support a major renewable fuels project expected to begin operations in 2029.
Part of the funding will come from a consortium of 10 financial institutions led by HSBC and the International Finance Corporation, according to the company. The investment marks another major step in Brazil’s push to expand low-carbon fuel production and strengthen its position in the global energy transition.
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The Brazil SAF refinery is expected to produce up to 1 billion liters annually of sustainable aviation fuel and renewable diesel once operations begin. Acelen said the project forms part of a broader strategy to increase renewable energy capacity while reducing emissions linked to transportation fuels.
The full project is projected to cost about $3 billion. In addition to refinery construction, the initiative includes the cultivation of macauba, a native Brazilian oilseed viewed as a promising feedstock for biofuel production. The company said soybean oil and used cooking oil will also be used in the refining process.
Brazil has emerged as a key market for biofuel investments because of its large agricultural sector and established ethanol industry. As global airlines and governments seek lower-emission alternatives to conventional jet fuel, sustainable aviation fuel projects have attracted increasing investment worldwide.
The Bahia development could also strengthen economic activity in northeastern Brazil, a region that has sought greater industrial investment in recent years. Analysts say projects tied to renewable fuels may create jobs in agriculture, logistics, refining, and infrastructure.
The financing agreement reflects growing interest from international lenders and development institutions in renewable energy projects across Latin America. Financial backing from global institutions may also help Brazil attract further capital into sustainable fuel production and clean energy infrastructure.
Acelen has not disclosed a detailed construction timeline beyond the expected 2029 operational target. However, the company indicated that work on the project will begin following the completion of financing arrangements and regulatory procedures.
The Brazil SAF project comes as countries and aviation companies face mounting pressure to reduce carbon emissions from air travel. Industry groups have identified sustainable aviation fuel as one of the most important tools for lowering emissions in the aviation sector over the coming decades.
If completed on schedule, the Bahia refinery could become one of the largest renewable fuel facilities in the region and reinforce Brazil’s role in the expanding global biofuels market.
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