Mubadala Capital announces billion-dollar investment in biofuels in Brazil

Mubadala Capital, the asset management arm of the United Arab Emirates sovereign wealth fund, revealed ambitious plans to invest US$13.5 billion in biofuels in Brazil over the next decade. Furthermore, the project includes the creation of a new stock exchange, marking a significant change in the country's economic and energy scenario.

According to information from the Financial Times, Mubadala Capital is intensifying its presence in Brazil, expanding its investments ranging from infrastructure, such as subway lines, to the acquisition of a majority stake in the company that owns the Burger King franchise in the country.

_{Head of Mubadala Capital in Brazil, Oscar Fahlgren (Photo: reproduction/Disclosure/Dado Galdieri/Bloomberg)}

Investments

In an exclusive interview with the FT, Oscar Fahlgren, head of Mubadala Capital in Brazil, revealed details of the company's main project, which aims to produce renewable diesel and sustainable aviation kerosene. This venture will mainly use non-consumable plant material as raw material.

Acelen, the fund's energy company, will be responsible for implementing the project, which will consist of five investment “modules” worth US$2.7 billion each. The first module is expected to start fuel production by the end of 2026.

Each module will include the construction of a new biorefinery with capacity to process 20,000 barrels of fuel per day, in addition to areas dedicated to growing the necessary raw material.

Fahlgren highlighted Brazil's strategic advantage for the project, stating that “it's all about raw materials (which, in reality, is agriculture. And Brazil is probably the best positioned country on the planet when it comes to agricultural proficiency, because because of the climate and fertile soil. Brazil is to agriculture what Abu Dhabi is to oil”.

Brazil and United Arab Emirates

Mubadala Capital's initiative not only represents a major investment in renewable and sustainable energy in Brazil, but also signals a strategic move to strengthen economic ties between the UAE and Brazil.

The creation of a new stock exchange promises to further boost the economic and financial development of the South American country, opening up new opportunities for investment and growth.

Featured Photo: Fuel pump (Reproduction/Disclosure/Pixabay)