Global consortium led by HSBC and IFC advances Bahia project, reinforcing Brazil’s leadership in renewable fuels for the global energy transition

São Paulo, May 21, 2026 – Acelen Renewables, the renewable energy company of Mubadala Capital, announced today that it has secured US$1.5 billion to initiate construction of its renewable fuels biorefinery in the state of Bahia, Brazil. Part of the funding is being provided through a consortium supported and led by HSBC and IFC, bringing together 10 leading domestic and international financial institutions: First Abu Dhabi Bank (FAB), Abu Dhabi Commercial Bank (ADCB), IDB Invest, BNDES, Asian Infrastructure Investment Bank (AIIB), FinDev Canada, KfW IPEX-Bank, Bradesco, BBVA, and Bank of China.

The biorefinery, expected to begin operations in 2029, will have the capacity to produce 1 billion liters annually of Sustainable Aviation Fuel (SAF) and Renewable Diesel (HVO). The facility will utilize HEFA (Hydroprocessed Esters and Fatty Acids) technology, one of the world’s leading pathways for renewable fuel production. The project is expected to position Brazil among the leading global hubs for sustainable aviation and heavy transport fuels, strengthening the country’s energy security and contributing to a more resilient energy matrix amid increasing global volatility and supply disruptions.

This milestone marks a significant advancement for the project and reinforces international market confidence in Brazil’s competitive advantages to develop a new low-carbon industrial platform. In total, the company’s first integrated production unit represents more than US$3 billion in investments and includes the development of an agro-industrial ecosystem encompassing the cultivation, extraction, and processing of macaúba co-products.

“Brazil combines unique conditions to lead the global energy transition, including agricultural scale, industrial excellence, and one of the cleanest energy matrices in the world. With a well-established presence in the country, Mubadala Capital strongly believes in Brazil’s potential to develop renewable fuels at scale — and is committed to being part of this journey,” said Leonardo Yamamoto, Partner at Mubadala Capital.

IFC (International Finance Corporation), a member of the World Bank Group focused on private sector development, acted as global coordinator and lead arranger alongside HSBC in structuring the financing following extensive technical, environmental, and social due diligence. The project will comply with IFC’s rigorous international standards for sustainability, governance, and environmental and social responsibility, including globally recognized environmental, social, and management criteria for infrastructure and energy transition projects.

“This investment reflects IFC’s commitment to catalyzing private capital where it can deliver transformative impact. By supporting one of Latin America’s first SAF facilities at this scale, we aim to demonstrate commercial viability, reduce investment risk, and lay the foundation for replicable investments across the region. Acelen Renewables’ project demonstrates how industrial innovation and sustainable development — including within the agribusiness sector — can reinforce one another, creating quality jobs, strengthening agricultural value chains, and accelerating Brazil’s transition to a more resilient economy,” said Olaf Schmidt, IFC Regional Industry Director for Manufacturing, Agribusiness, and Services in Latin America and Europe.

The financing structure underscores the project’s technical and commercial maturity. Integrated engineering has already been completed, strategic contracts have been negotiated, and approximately 90% of biofuels commercialization volumes (SAF and HVO) have already been structured and contracted. The project also includes globally recognized partners such as Honeywell UOP, Alfa Laval, and Construcap, in addition to commercial agreements with companies including Trafigura, Moeve, Bunge, and BGN.

“The structuring of this financing confirms the project’s technical, financial, and environmental robustness. We are now entering a new phase of large-scale industrial execution,” said Luiz de Mendonça, CEO of Acelen Renewables.

The biorefinery will be built within an existing industrial site in São Francisco do Conde, Bahia. At the peak of construction, the project is expected to generate approximately 3,600 direct and indirect jobs.

The project integrates agricultural production, industrial development, and advanced fuel technologies to produce renewable fuels from both conventional feedstocks — such as soybean oil and used cooking oil (UCO) — and macaúba, a native Brazilian crop with significant potential for advanced biofuels production.

Acelen Renewables plans to cultivate approximately 144,000 hectares on degraded land, incorporating productivity gains already embedded in the project design, with 20% dedicated to partnerships with family farming operations and small-scale producers. The model seeks to combine productive land regeneration, social inclusion, and decarbonization, aligned with global best practices in sustainability and low-carbon development.

According to a study conducted by Fundação Getulio Vargas (FGV), the project’s integrated value chain could generate up to US$40 billion for the Brazilian economy and create approximately 85,000 direct and indirect jobs over the next decade.

The project is part of the Brazil Climate and Ecological Transformation Investment Platform (BIP), which connects Brazilian projects to an extensive network of financial institutions to mobilize public and private capital at scale for initiatives that support the country’s climate transition and national decarbonization targets.

“HSBC is proud to have coordinated the structuring of an initiative that combines industrial innovation, sustainable development, and international capital mobilization to accelerate renewable fuels production. This transaction reinforces our commitment to supporting clients and partners in the energy transition by connecting global financing to transformational projects with long-term economic, social, and environmental impact,” said Alexandre Guião, CEO of HSBC Brazil.

About Acelen Renewables
Acelen Renewables is a renewable energy company of Mubadala Capital, the global alternative asset management firm headquartered in Abu Dhabi, United Arab Emirates, established to actively participate in the global energy transition. The company operates independently from Acelen Mataripe Refinery’s and is developing an integrated ecosystem for renewable fuels production in Brazil, combining agricultural innovation, industrial technology, and the decarbonization of mobility and aviation. Learn more at acelenrenewables.com.