A sustainable aviation fuel and kerosene factory will be built in the northeastern state of Bahia with the help of a $2.5 billion investment from the state-owned investment company Mubadala Capital of the United Arab Emirates over the course of ten years.
The investment, which will begin production in 2026, will be done through Acelen, Mubadala's Brazilian subsidiary, the firm said.
The new project is scheduled to begin in January 2024. It will generate 1 billion litres of hydrotreated vegetable oil annually, a non-fossil fuel that is similar to diesel.
By utilising its natural resources, the project seeks to strengthen Brazil's position as a strategic supplier of renewable fuels. Brazil already has a facility that makes soy-based biodiesel, which Mubadala purchased in 2021.
As there is still no legislation in the Brazilian market that allows for local sales, Acelen anticipates that all of its output of renewable fuel will be exported.
During their meeting in Abu Dhabi, Presidents of the UAE and Brazil, Mohammed bin Zayed and Luiz da Silva, signed a number of documents.
As growth and relations between the two governments deepen, the two nations have been eager to promote commerce, investment, and tourism interchange.
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. “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 stated.
He continued by saying that there are still enormous untapped prospects in the sustainability sector despite the large investments and cooperation between the two countries.
The COP28 UN climate talks are scheduled to take place in the UAE later this year, while Brazil is a contender to host the event in 2025.