Abu Dhabi-based Mubadala Capital's energy company Acelen will invest more than 12 billion Brazilian real ($2.4 billion) over the next 10 years to produce 1 billion litres of renewable diesel and sustainable aviation kerosene to help accelerate the energy transition in Brazil.

Acelen, which owns the Mataripe Refinery in the Bahia province, plans to start production in the first quarter of 2026, the company said in a recent statement. 

Initially, the fuels will be processed using soybean oil and other raw materials and will transition to using macaúba oil, a native Brazilian tree with high energy potential and palm oil.  

This will position Acelen as one of largest renewable fuel producers globally. Initially, the fuel will be sold in international markets.  

"We will produce sustainable fuel on a global scale, inserting Brazil in the development of the international sustainable chain," said Luiz de Mendonca, Acelen’s chief executive. "This will be Acelen’s first project in renewable fuels. So there is room for us to grow globally in this sector."

Acelen was set up Mubadala Capital, an asset management subsidiary of Mubadala Investment Company, a sovereign investor headquartered in Abu Dhabi.

Earlier this week, during the state visit by the Brazilian President Luiz Inácio Lula da Silva to the UAE, Abdullah bin Touq Al Marri, Minister of Economy, acknowledged Brazil as an important trading partner for the GCC country.

(Reporting by Brinda Darasha; editing by Seban Scaria)