It is reported that the new investment plan comes as part of the Abu Dhabi-based asset management arm’s wider plans for the Latin American country, which includes the creation of a new stock exchange
Mubadala Capital plans to invest approximately $13.5bn in a biofuels project in Brazil over the next ten years. (Credit: Thomas H. from Pixabay)
Mubadala Capital, a fully owned asset management arm of UAE’s sovereign wealth fund Mubadala Investment, is reportedly planning to invest approximately $13.5bn in a biofuels project in Brazil over the next 10 years.
The new move comes as part of the Abu Dhabi-based asset management arm’s wider plans for the Latin American country, which includes the creation of a new stock exchange, reported Financial Times.
Under its flagship scheme, Mubadala Capital intends to produce renewable diesel as well as sustainable aviation kerosene primarily by utilising non-food plant matter in Brazil.
According to the news agency, the asset management arm’s energy company Acelen will undertake the large-scale development of five modules each valued at $2.7bn. The initial production is slated to commence by the end of 2026.
Financial Times also stated that each module will comprise a new biorefinery capable of processing 20,000 barrels of fuel daily, along with supporting infrastructure and planted areas designated for cultivating the input crop.
Mubadala Capital Brazil head Oscar Fahlgren has been quoted by the publication as saying: “It’s all about feedstock [which] in reality is agriculture. And Brazil is probably the best-placed country on the planet when it comes to agricultural proficiency because of the climate and the fertile soil.
“Brazil is to agriculture what Abu Dhabi is to oil.”
Fahlgren also said that the new commitment will be funded through a mix of equity and debt over a period of five to 10 years.
The asset management arm’s initiative is also expected to include the conversion of an existing oil refinery in the north-eastern Brazilian state of Bahia which was acquired from state-controlled Petrobras in 2021.