Mubadala Capital to Invest $13.5 Billion in Brazil's Biofuel Market Over the Next Decade
Mubadala Capital, the sovereign wealth fund of the United Arab Emirates, plans to invest $13.5 billion in Brazil's biofuel market over the next decade.
The investment will focus on producing renewable diesel and sustainable aviation kerosene using non-food plant matter.
The Brazilian subsidiary of Mubadala, Acelen, will begin developing a large-scale biofuel project by 2026.
The funds will be sourced through a combination of equity and debt over a period of five to ten years.
A $13.5 billion project is planned in Brazil, consisting of five modules, each costing $2.7 billion.
These modules will house new biorefineries capable of processing 20,000 barrels of fuel per day and the necessary infrastructure and farmland for the input crop.
Brazil, with its favorable climate and fertile soil, is considered the best country for agricultural production, making it ideal for this project.
An existing oil refinery in Bahia, acquired from Petrobras in 2021, will also be converted as part of the project.
Fahlgren, the project's leader, described it as a significant capital investment.
Mubadala, an Abu Dhabi-based investment company, sees great potential for investing in Brazil's green energy transition sector, building on its existing $6 billion investments in the country.
The company has been actively investing in Brazil for over a decade, despite other foreign investors pulling back.
Mubadala also plans to launch a new stock exchange in Brazil next year through its Americas Trading Group to improve infrastructure for players in the segment, starting with equities and potentially expanding.
The Emirati sovereign wealth fund's asset management arm is increasing its investments in Brazil, where they already hold stakes in metro lines, medical universities, and the local Burger King owner.
They are bullish on the investment climate in Brazil and see many opportunities.
Some of their current assets may be sold in the near future as they have matured.
No asset classes are being excluded from their investments in Brazil.