UAE, Brazil Secure $2.5b SAF Deals
Mubadala Capital, a state-owned investment firm of UAE, has signed an agreement to invest $2.5 billion in Brazil for the construction of a sustainable aviation fuel and kerosene facility in Bahia state. The investment will be made over the course of the next decade.
The company announced that it would make the $2.5 billion investment through its Brazilian arm, Acelen, to establish a sustainable aviation fuel (SAF) and kerosene plant in Bahia state.
The project is slated to begin production in 2026, and construction work is scheduled to commence in January 2024. The plant will manufacture 1 billion litres of hydrotreated vegetable oil per year, a diesel-like fuel made without using fossil resources.
The goal of the project is to consolidate Brazil's position as a crucial renewable fuel provider by utilising its natural resources, as the country already has a soy-based biodiesel unit that was purchased by Mubadala in 2021.
Since there is currently no legislation in the Brazilian market permitting domestic sales, Acelen expects to export all of its renewable fuel production.
The agreement was reached during a meeting between Brazil's President, Luiz da Silva, and the UAE's President, Mohammed bin Zayed, in Abu Dhabi, as the two nations sought to facilitate trade, investment, and tourism exchange, as well as reinforce their relations.
UAE's Minister of Economy, Abdullah Al-Marri, noted that the Emirati-Brazilian collaborations were built on the solid foundations of friendship and respect with shared interests and that the non-oil foreign trade between the two nations surpassed the $4 billion mark in 2022, representing a 32 per cent increase from 2021. Despite the extensive investment and cooperation between the two countries, there are still ample opportunities in the sustainability sector.
Both countries announced that they would work together to encourage the rest of the world to take ambitious climate action. Brazil is a candidate to host the 2025 edition of the COP28 UN climate talks, while the UAE will host this year's COP28 UN climate conference.
Source: Arab News
