Brazilian Acelen to invest in renewable diesel

Acelen, a company backed by Mubadala Capital, plans to invest $2.44 billion to produce "green" jet fuel and diesel in Brazil. The new biorefinery is expected to produce one billion liters of hydrotreated vegetable oil per year, reinforcing Brazil's role as a strategic supplier of renewable fuels.

Share:

Acelen, backed by Mubadala Capital, will invest R$12 billion ($2.44 billion) over 10 years to produce “green” diesel and jet fuel in Brazil starting in 2026, making it one of the world leaders in this segment.

The new biorefinery, which the energy company plans to begin construction in January 2024, will have the capacity to produce one billion liters per year of hydrotreated vegetable oil (HVO), a diesel-like fuel made without fossil resources that comes from vegetable oils and animal fats.

Brazil has a leading role in renewable diesel

The project reinforces Brazil’s role as a strategic supplier of renewable fuels, capitalizing on its abundant natural resources. Brazil already produces biodiesel from soybeans and ethanol from sugar and corn.

Marcelo Cordaro, vice president of new projects at Acelen, said the biorefinery will use the existing infrastructure of its Mataripe plant, including storage and logistics, as well as the port terminal for exporting the new fuels. The unit, which represents 14% of Brazil’s oil refining capacity, was acquired by Mubadala from state-owned Petroleo Brasileiro (PETR4.SA) in 2021.

Acelen’s goal is to become a global player

Initially, soybean oil will be the plant’s primary feedstock, which could make Acelen the largest single buyer of the commodity in Brazil. The plant will need up to 900,000 tons of soybean oil per year. There is also expected to be an additional 100,000 to 150,000 tons of corn oil and animal fats consumed annually. Acelen signed a memorandum of understanding in Abu Dhabi with the government of the State of Bahia last Saturday.

Acelen expects that all of its renewable fuel production will be exported, as there are still no regulations in the Brazilian market that make domestic sales possible. “We want to be a global player, we are starting to be big, we already have the competitiveness to operate abroad,” said Acelen’s Vice President of Institutional Relations, Communication and ESG, Marcelo Lyra. “Obviously, the Brazilian market is growing and starting to encourage this type of fuel, so logically for us it would be interesting to participate.”

ArcLight Capital Partners announces the acquisition of Middletown Energy Center, a combined-cycle natural gas power plant, aimed at meeting the substantial rise in energy demand from data centers and digital infrastructure in Ohio.
The commissioning of LNG Canada, the first major Canadian liquefied natural gas export facility led by Shell, has not yet triggered the anticipated rise in natural gas prices in western Canada, still facing persistent oversupply.
Horizon Petroleum Ltd. is advancing towards the production launch of the Lachowice 7 gas well in Poland, having secured necessary permits and completed preliminary works to commence operations as early as next August.
European Union member states have requested to keep their national strategies for phasing out Russian gas by 2027 confidential, citing security concerns and market disruption risks, according to a document revealed by Reuters.
The asset takeover process of Global Bioenergies, under a pre-pack disposal procedure, has been extended until 18 July at noon, following requests from potential bidders seeking additional time to assess the French company's financial situation.
TotalEnergies becomes a member of PJM Interconnection, expanding its trading capabilities in North America's largest wholesale electricity market. The decision strengthens the company's presence in the United States.
Turkey has connected its gas grid to Syria’s and plans to begin supplying gas for power generation in the coming weeks, according to Turkish Energy Minister Alparslan Bayraktar.
SIAAP and SUEZ have inaugurated a new biogas production unit at the Seine Aval wastewater treatment plant, the largest in Europe, as part of a modernization project to strengthen the energy sovereignty of the Paris region.
Despite record electricity demand, China sees no significant increase in LNG purchases due to high prices and available alternative supplies.
US natural gas production and consumption are expected to reach record highs in 2025, before slightly declining the following year, according to the latest forecasts from the US Energy Information Administration.
Canadian company Hydron Energy will supply its innovative INTRUPTor-Mid technology to produce renewable natural gas in Ontario, marking its first commercial order in the biomethane sector with a promise of significant cost reductions.
Naftogaz announces the launch of a natural gas well with a daily output of 383,000 cubic meters, amid a sharp decline in Ukrainian production following several military strikes on its strategic facilities.
US President Donald Trump has ratified a law extending until the end of 2029 the tax credit on renewable natural gas production from biomass and animal manure, aiming to boost the rural economy.
Sonatrach and ENI have signed a $1.35 billion production-sharing agreement aiming to extract 415 million barrels of hydrocarbons in Algeria's Berkine basin, strengthening energy ties between Algiers and Rome.
Maple Creek Energy is soliciting proposals for its advanced 1,300 MW gas project in MISO Zone 6, targeting long-term contracts and strategic co-location partnerships with accelerated connection to the regional power grid.
VMOS signs a USD 2 billion loan to finance the construction of the Vaca Muerta South pipeline, aiming to boost Argentina's energy production while reducing costly natural gas imports.
According to a Wood Mackenzie report, Argentina could achieve daily gas production of 180 million cubic metres per day by 2040, aiming to become a key regional supplier and a significant exporter of liquefied natural gas.
Valmet secures a contract to deliver a bubbling fluidized bed biomass boiler and flue gas handling equipment to Kraftringen Energi's upcoming combined heat and power plant, aimed at strengthening energy supply in Sweden.
Côte d'Ivoire and the Italian group Eni assess progress on the Baleine energy project, whose third phase plans a daily production of 150,000 barrels of oil and 200 million cubic feet of gas for the Ivorian domestic market.
The extreme heatwave in China has led to a dramatic rise in electricity consumption, while Asia records a significant drop in liquefied natural gas imports amid a tight global energy context.