- Acelen Renewables secured $1.5 billion to start construction of a renewable fuel biorefinery in Bahia, Brazil.
- The plant aims to produce 1 billion liters a year of SAF and renewable diesel from 2029.
- The project links Brazil’s biofuels ambitions to export markets, traceability, rural development, and future SAF regulation.
Brazil Moves To Scale SAF Production
São Francisco do Conde, Bahia, is moving into the center of Brazil’s low-carbon fuel strategy.
Acelen Renewables secured $1.5 billion in financing to start construction of a renewable fuel biorefinery in the state. The project ranks among Latin America’s largest sustainable aviation fuel developments.
The plant is scheduled to begin operations in 2029. It aims to produce 1 billion liters a year of sustainable aviation fuel and renewable diesel.
The financing was arranged by a consortium supported and led by HSBC and the International Finance Corp. The group includes ten national and international financial institutions.
They include First Abu Dhabi Bank, Abu Dhabi Commercial Bank, IDB Invest, BNDES, and Asian Infrastructure Investment Bank. Development Finance Institute Canada, KfW IPEX-Bank, Bradesco, BBVA, and Bank of China also joined the consortium.
The lender group shows growing demand for bankable low-carbon fuel assets. It also strengthens Brazil’s role in a fast-growing market.
Airlines, logistics groups, and industrial buyers need reliable supply at commercial scale. Brazil wants to become one of the countries able to provide it.
A $3 Billion Industrial Platform
The Bahia biorefinery forms part of a wider integrated unit. Total investment will exceed $3 billion.
The project combines farming, oil extraction, processing, and renewable fuel production. It also brings together global lenders, technology providers, and fuel buyers.
Acelen said the facility will use hydroprocessed esters and fatty acids technology, known as HEFA. The industry uses HEFA to produce renewable diesel and SAF from oils and fats.
The IFC acted as general coordinator and lead arranger alongside HSBC. The institution is the World Bank Group’s private sector arm.
Technical, environmental, and social due diligence shaped the financial structure. That scrutiny matters for a project tied to agriculture, industrial infrastructure, and export credibility.
Acelen said the project has completed integrated engineering. It has also negotiated strategic contracts.
The company has structured and signed about 90% of SAF and renewable diesel commercialization. That gives the project a stronger commercial base before construction begins.
Acelen named Honeywell UOP, Alfa Laval, and Construcap among its project partners. Commercial agreements include Trafigura, Moeve, Bunge, and BGN.
Feedstock Strategy Takes Center Stage
The feedstock model sits at the center of the project’s ESG case.
Acelen plans to use soybean oil, used cooking oil, and macauba. Macauba is a native Brazilian crop with strong potential for advanced biofuels.
The company is developing an integrated biofuels platform based on macauba. It plans to produce 1 billion liters a year of renewable fuels.
The agricultural plan covers 144,000 hectares in degraded areas. Acelen said productivity gains already form part of the project model.
The company will reserve 20% of the area for family farmers and small producers. That creates a social component inside the feedstock strategy.
The model could help answer a key biofuel question. Can producers scale feedstock without adding pressure to sensitive land?
For Brazil, the answer matters beyond this project. The country wants to build a domestic low-carbon fuel chain. It also wants to create rural income and new industrial value.
Acelen targets the United States and Europe as key export markets. Both regions are tightening aviation decarbonization rules.
They are also building demand for fuels that meet strict sustainability criteria.
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Traceability And SAF Rules Move Up The Agenda
Traceability will test the project’s credibility.
In March 2026, Acelen Renewables and Finboot signed a 12-month partnership. The companies will develop digital traceability infrastructure for biofuel production.
The agreement will use Finboot’s blockchain-based “Marco Track & Trace” platform. The system will monitor feedstock origin, farm-level output, emissions, and sustainability compliance.
For airlines and fuel buyers, those systems matter. SAF claims depend on proof of origin, lifecycle emissions, and compliance data.
Brazil is also moving toward clearer SAF rules.
The National Agency for Petroleum, Natural Gas and Biofuels plans to publish SAF production and marketing regulation in the second half of 2026. That timetable could shape domestic demand and export standards.
It could also influence investor confidence in future biofuel projects.
“Brazil has unique conditions to lead the global energy transition: combining agricultural scale, industrial excellence, and one of the cleanest energy matrices in the world,” Leonardo Yamamoto, partner at Mubadala Capital, said. “With a consolidated presence in the country, Mubadala Capital believes in Brazil’s potential to develop renewable fuels on a large scale.”
For executives and investors, the Bahia project reaches beyond one biorefinery. It tests Brazil’s ability to turn agriculture into a global SAF platform.
It also puts the country’s industrial base and clean power advantage to work.
If Acelen delivers the project on schedule, Brazil could strengthen its energy security. It could also supply export markets under pressure to cut aviation and freight emissions.
The project places Latin America more firmly in the global race for low-carbon fuels. The next test is scale, traceability, and financeable supply chains.
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