UAE and Brazil secure deals worth $2.5 billion for sustainable aviation fuel
In an effort to help address the increasing global demand for clean fuels, UAE’s state-owned investment firm Mubadala Capital will invest $2.5 billion over the next decade to produce renewable diesel and sustainable aviation kerosene in the northeastern Brazilian state of Bahia. The investment will be made through Acelen, Mubadala’s arm in Brazil.
While work on the new project is expected to start in January next year, production could begin in 2026. In a statement released Sunday, Acelen said the project is estimated to generate 1 billion litres of hydrotreated vegetable oil in a year – a diesel-like fuel produced without fossil resources – in addition to creating 90000 jobs and reducing emissions by up to 80%.
The landmark agreement came within a framework of signings between UAE’s President Mohamed bin Zayed Al Nahyan and his Brazilian counterpart Luiz Inacio Lula da Silva during their meeting in Abu Dhabi. The two countries are currently collaborating on a number of strategic sectors, including construction, shipping, energy, banking, and transport.
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The total non-oil foreign trade between both crossed the $4 billion mark last year, an impressive growth of 32% from more than $3 billion seen in 2021, UAE’s Minister of Economy Abdulla bin Touq Al Marri said on Sunday. As the UAE continues to strengthen its relations with Brazil, the Emirates’ investments in Latin America’s largest economy have risen to $5 billion, he added.
Initially, Acelen will mainly be focused on selling products to the foreign market, where it anticipates relatively more demand. According to the International Air Transport Association, sustainable aviation fuel could contribute about 65% of the reduction in emissions required by the aviation industry to meet its target of net zero by 2050.
Nonetheless, while the UAE is all set to host the upcoming COP28 climate summit in November this year, Brazil is a candidate to host the 2025 edition.
