Acelen, which is backed by Mubadala Capital, will invest 12 billion reais ($2.44 billion) over ten years to produce “green” jet fuel and diesel in Brazil beginning in 2026, positioning the business among the top producers in the world, executives said.
The energy business intends to start construction on the new biorefinery in January 2024. It will be able to produce 1 billion litres of hydrotreated vegetable oil (HVO) annually, a non-fossil fuel derived from vegetable oils and animal fat.
The initiative strengthens Brazil’s position as a key supplier of renewable fuels by utilizing its wealth of natural resources. Brazil already makes ethanol from sugar and corn, as well as biodiesel based on soy.
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The biorefinery will leverage the existing infrastructure at its Mataripe plant, including tankage and logistics, as well as the port terminal for the export of new fuels, according to Marcelo Cordaro, vice president of new business at Acelen.
This unit, which makes up 14% of Brazil’s capacity for oil refining, was purchased by Mubadala in 2021 from the government-run Petroleo Brasileiro (PETR4.SA).
“We want to be a global player, we are starting to be big, we already have the competitiveness to operate abroad,” said Acelen’s vice-president of institutional relations, communication and ESG, Marcelo Lyra.
Story was adapted from Reuters
