Acelen, a downstream company created by Mubadala Capital, is planning to invest more than $2.44bn to produce renewable fuels in Brazil over the next ten years.

In this regard, Acelen has signed a memorandum of understanding (MoU) with the government of Bahia, Brazil, in Abu Dhabi, UAE.

The MoU is aimed at producing renewable diesel and Querosene de Aviação, or sustainable aviation kerosene (QAV), to help advance the South American country’s energy transition.

Acelen is planning to build a new biorefinery in Bahia. The plant is expected to create 90,000 direct and indirect jobs and cut CO₂ emissions by up to 80% by replacing fossil fuels.

The biorefinery will be equipped to produce one billion litres per year of renewable fuels, which is equivalent to the annual supply of 1.1 million vehicles.

Acelen plans to supply the green diesel and sustainable aviation fuel produced at the biorefinery to the foreign market, where these products are already approved for sale.

With production capacity of 20,000bpd per day, the biorefinery is scheduled to start operations in Q1 2026. Work on the project is planned to start as early as January 2024.

The refinery will leverage the existing utilities, tanking and logistics infrastructure of the Acelen-owned Mataripe refinery in the Mataripe district.

Acelen CEO Luiz de Mendonça said: “Acelen’s path towards energy transition began at the beginning of its operations, with the modernisation of the Mataripe Refinery and reduction of its environmental impact.

“Now, we are taking a strategic step in our mission to play a leading role in the energy transition in a solid way, with a unique and transformative project, renewing the company’s commitment to a more sustainable future.”