UAE’s Mubadala Capital Pioneers $13.5 Billion Investment in Brazil’s Biofuel Market
In a groundbreaking move, UAE’s Mubadala Capital has pledged a staggering $13.5 billion investment in Brazil’s biofuel market over the next decade. Oscar Fahlgren, the head of Brazil strategy at the sovereign wealth fund, unveiled this ambitious initiative in an exclusive interview with the Financial Times.
A Vision for Sustainable Energy Production
Fahlgren revealed that the funds will be utilized to produce renewable diesel and sustainable aviation kerosene using non-food plant matter. The plan includes the development of a large-scale biofuel project by Mubadala’s Brazilian subsidiary, Acelen, by 2026.
A Multi-Module Approach
The investment will be distributed across five modules, each valued at $2.7 billion, aimed at establishing new biorefineries capable of processing 20,000 barrels of fuel per day. These modules will also include the necessary infrastructure and cultivated acreage to support the input crop.
Positioning Brazil as an Agricultural Powerhouse
Fahlgren highlighted Brazil’s agricultural proficiency, comparing it to Abu Dhabi’s status in the oil industry. He emphasized the importance of feedstock and the country’s ideal climate and fertile soil for agricultural production.
Expanding Investment Portfolio in Brazil
Mubadala’s venture into bioenergy will complement its existing $6 billion investments in Brazil, representing a significant portion of the group’s global portfolio. The sovereign wealth fund is also planning to launch a stock exchange in Brazil through its Americas Trading Group.
Paving the Way for Green Energy Transition
Fahlgren expressed optimism about the investment climate in Brazil and the potential for growth in green energy initiatives. The fund’s strategic investments in various sectors across the country reflect its confidence in the Brazilian market.