Mubadala Shifts From Oil To Green Energy In Brazil

(MENAFN- The Rio Times) Mubadala Capital, the UAE's sovereign wealth fund's investment arm, is moving from traditional oil operations in Brazil. Motivated in part by a pricing dispute with Petrobras , Mubadala accused the oil giant a year ago of setting unfairly high oil prices. Consequently, Mubadala is now investing $3 billion in a new bio-refinery in Bahia, Brazil, eyeing a sustainable future. This decision aligns with Mubadala's commitment to sustainability and environmental responsibility. The Bahia facility will use macaúba, a local plant, to produce renewable diesel and aviation fuel.

Additionally, this move reduces carbon footprints significantly. Furthermore, Mubadala is developing a technology hub in Montes Claros.

Backed by R$ 250 ($45) million from the Brazilian Development Bank, this hub will advance renewable energy technologies. Previously, Mubadala had acquired the Mataripe refinery for US$1.8 billion in 2021. However, following strategy reassessment amid changing regulatory and market conditions, Mubadala decided to exit. Thus, the company now focuses on environmentally impactful projects. The ambitious Bahia bio-refinery aims to produce 1 billion liters of renewable fuels yearly. Primarily targeting the European and U.S. markets, Mubadala addresses the increasing demand for cleaner fuels. Expected to complete within 24 to 30 months, the refinery should reach full production in five to ten years. This strategic shift is a response to both local and global market dynamics. It also adapts to worldwide shifts toward sustainable energy, aligning with global environmental goals. Importantly, it shows traditional energy companies reconfiguring to meet global sustainability demands.

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