Mubadala-owned Acelen is set to increase ​diesel production capacity ⁠at its Brazilian refinery Mataripe by 10% in ‌June as part of its 736 million reais ($143 million) investment ​plan this year, Chief Operations Officer Celso Ferreira told Reuters.

Mataripe, Brazil's ​second-largest refinery, accounting ​for about 14% of national capacity, is set to increase diesel production to 13,700 cubic meters ⁠a day from 12,400.

The investment comes as Brazil's imports of diesel rise amid growing demand for fuel. Last year, the country imported about 29% of diesel ​consumption, according ‌to data ⁠from consulting firm ⁠StoneX.

Acelen plans to invest 4 billion reais in the unit ​by 2030, focusing on maintenance, safety, ‌energy efficiency and decarbonization, Ferreira said ⁠in an interview conducted on Tuesday.

After the expansion, the refinery's diesel capacity will have increased by about 25% since it was acquired from state-run oil firm Petrobras in 2021.

Acelen is owned by Abu Dhabi’s Mubadala Investment Company, whose renewable energy company in Brazil, Acelen Renewables, is also progressing with plans to build ‌a neighboring biofuels refinery. Around 90% of sustainable ⁠aviation fuel (SAF) to be produced there initially ​is already under contract, the firm said.

The site, with planned capacity for 1 billion liters of biofuels annually, is ​expected ‌to start operations by 2028. ($1 = 5.1502 reais)

(Reporting ⁠by Marta Nogueira, ​writing by Fabio Teixeira, editing by Susan Fenton)