Mubadala Capital Invests USD2.5 Billion in Brazil to Build Sustainable Aviation Fuel Plant
Date
4/17/2023 2:44:13 AM
(MENAFN) Mubadala Capital, a state-owned investment firm in the UAE, has signed a deal to invest USD2.5 billion in Brazil over the next 10 years to build a sustainable aviation fuel and kerosene plant. The plant will be located in the northeastern state of Bahia and will be built through Acelen, Mubadala's arm in Brazil, with production set to begin in 2026. The project will produce 1 billion liters of hydrotreated vegetable oil per year, a diesel-like fuel made without fossil resources.
The project aims to reinforce Brazil's role as a strategic provider of renewable fuels by capitalizing on its natural resources. Brazil 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 was signed during a meeting between Brazil's President Luiz da Silva and UAE's President Mohammed bin Zayed in Abu Dhabi. The two countries have been keen to facilitate trade, investment, and tourism exchange as growth and relations strengthen between the two governments. UAE's Minister of Economy Abdullah Al-Marri said that the Emirati-Brazilian partnerships are based on solid foundations of friendship and respect with mutual interests.
He added that despite the significant investments and cooperation between the two countries, there are still vast untapped opportunities in the sustainability space. The UAE is due to host the COP28 UN climate talks later this year, and Brazil is a candidate to host the 2025 edition. The countries said they had agreed to work together to "encourage ambitious climate action" from the rest of the world.
The sustainable aviation fuel plant is part of Mubadala's efforts to expand its presence in Brazil and the wider Latin American market. The investment will not only help Brazil's renewable fuel industry but also contribute to the UAE's goal of reducing its dependence on oil and gas. The project is expected to create jobs and boost the local economy while reducing greenhouse gas emissions. The agreement represents a significant step towards achieving a more sustainable future for the aviation industry and promoting renewable energy solutions.
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