The Asian Infrastructure Investment Bank (AIIB) will lend USD58 million to Acelen Renewables to support the development of a large-scale biorefinery project in Bahia, Brazil. The project will expand the production of sustainable aviation fuel (SAF) and renewable diesel (HVO), contributing to the decarbonization of the aviation and heavy transport sectors.
A new hydro-processed esters and fatty acids (HEFA) plant, with a processing capacity of about 20,000 barrels a day, will convert feedstocks such as soybean oil, used cooking oil and other waste-based inputs into SAF and HVO, with output expected to serve domestic and international markets.
As one of the first large-scale private-sector SAF production facilities in Brazil utilizing HEFA technology, the project represents an important step toward establishing a commercially viable SAF market in the country and abroad.
“By supporting the production of cost-competitive, lower-emission fuels, the project should help reduce greenhouse gas emissions in hard-to-abate sectors such as aviation,” said Konstantin Limitovskiy, AIIB’s Chief Investment Officer, Public Sector (Region 2) & Project and Corporate Finance (Global) Clients. “We are helping accelerate Brazil’s transition toward lower-carbon energy systems while supporting employment and local economic development, while also strengthening technical capabilities in advanced biofuel production.”
“The structuring of this financing confirms the project’s technical, financial, environmental and social robustness,” said Luiz de Mendonça, Chief Executive Officer of Acelen Renewables. “We are now entering a new phase of large-scale industrial execution.”
As part of a broader financing package, the International Finance Corporation (IFC), the Inter-American Development Bank and other development finance institutions are expected to participate alongside AIIB to commit about USD1.5 billion in total project financing. This partnership reflects strong international confidence in Brazil’s renewable fuels sector and demonstrates the role of multilateral cooperation in mobilizing private capital for low-carbon fuel solutions.
About AIIB
The Asian Infrastructure Investment Bank is a multilateral development bank dedicated to financing “Infrastructure for Tomorrow,” with sustainability at its core. AIIB began operations in 2016, now has 111 approved members worldwide, is capitalized at USD100 billion, and is AAA-rated by major international credit rating agencies. AIIB collaborates with partners to mobilize capital and invest in infrastructure and other productive sectors that foster sustainable economic development and enhance regional connectivity.
About Acelen Renewables
Acelen Renewables is a renewable energy company owned by Mubadala Capital, a global alternative asset management firm headquartered in Abu Dhabi, United Arab Emirates, created to actively participate in the global energy transition. The company is developing an integrated ecosystem for renewable fuel production in Brazil, combining agricultural innovation, industrial technology and the decarbonization of mobility and aviation.
