UAE’s Mubadala Capital plans to invest $13.5 billion in Brazil’s biofuel market over the next decade, focusing on the production of renewable diesel and sustainable aviation kerosene using non-food plant matter. Oscar Fahlgren, head of Brazil strategy at Mubadala, revealed that the initiative would involve developing a large-scale biofuel project by 2026, leveraging Brazil’s agricultural prowess for feedstock.
The investment will include five modules, each valued at $2.7 billion, with a new biorefinery capable of processing 20,000 barrels of fuel per day, as well as the necessary infrastructure and cultivated acreage for input crop production. Additionally, Mubadala’s venture into bioenergy will convert an existing oil refinery in Bahia, acquired from Petrobras in 2021. Fahlgren expressed confidence in the significant potential for green energy transition projects in Brazil, while the fund continues to increase its stake in Brazil’s economy through investments in various sectors such as metro lines, medical universities, and Burger King ownership.