Mubadala Capital inked a deal to invest $2.5 billion in Brazil over the next 10 years to build a sustainable aviation fuel and kerosene plant in the northeastern state of Bahia. The investment would be made through Acelen, Mubadala’s arm in Brazil, to start production in 2026.
The project aims to reinforce Brazil’s role as a strategic provider of renewable fuels by capitalizing on its natural resources as the country already has a unit that produces soy-based biodiesel which was acquired by Mubadala in 2021.
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.
The agreement comes on the backdrop of Brazil’s President Luiz da Silva and UAE’s President Mohammed bin Zayed meeting in Abu Dhabi.
Abdullah Al-Marri, Minister of Economy, UAE said: “The total non-oil foreign trade for the year 2022 between the UAE and Brazil crossed the $4 billion mark, a growth of 32 percent from more than $3 billion in 2021.”
He added that despite the significant investments and cooperation between the two countries there are still vast untapped opportunities in the sustainability space.