Acelen, a company backed by Mubadala Capital, has announced that it will invest $2.44 billion over the next 10 years to produce “green” diesel and jet fuel in Brazil. The investment will enable Acelen to become one of the global leaders in this segment.
The company plans to start building the new biorefinery in January 2024 and begin production in 2026. The biorefinery will have the capacity to produce 1 billion liters per year of hydrotreated vegetable oil (HVO), a diesel-like fuel made without fossil resources that comes from vegetable oils and animal fat.
Brazil already produces soy-based biodiesel and ethanol from sugar and corn. Acelen's project will reinforce Brazil's position as a strategic provider of renewable fuels, capitalizing on its abundant natural resources. Marcelo Cordaro, vice president of new business at Acelen, stated that the biorefinery will use the existing infrastructure at its Mataripe plant, including tankage and logistics, and the port terminal for the export of new fuels.
Initially, soyoil will be the plant's main raw material, potentially making Acelen Brazil's largest individual buyer of that commodity. The plant will require up to 900,000 tonnes of soy oil per year. There should also initially be an additional annual consumption of 100,000 to 150,000 tonnes of corn oil and animal fat.
Acelen signed a memorandum of understanding with the government of Bahia state in Abu Dhabi on Saturday. Initially, Acelen anticipates that all of its renewable fuel production will be exported, as there is still no regulation in the Brazilian market that makes domestic sales possible.
“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. “Obviously, the Brazilian market is developing and starting to encourage this type of fuel, so logically for us, it would be interesting to participate in it.”
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In an interview with Reuters, Mr. Cordaro emphasized the significance of the project and the potential for Acelen to become a key player in the renewable fuel market: “We will be producing a fuel that is cleaner and more sustainable, and that will help reduce greenhouse gas emissions, which is a global trend. We will be among the top three global producers of HVO fuel, and that is a significant achievement.”
The investment by Acelen underscores the growing importance of renewable fuels in the global energy mix, as companies and governments seek to reduce carbon emissions and mitigate the effects of climate change. By investing in renewable fuels, Acelen is not only contributing to the transition to a low-carbon economy but also positioning itself as a leader in the renewable energy sector.
