The Mitigation Action Facility welcomes a major milestone in the development of Brazil’s sustainable aviation fuel (SAF) industry, as the Brazil – Sustainable Aviation Fuel project, implemented by Acelen Renewables, has announced a USD 1.5 billion financing package to begin construction of its renewable fuels biorefinery in Bahia, Brazil.
The financing milestone highlights the critical role of blended public and private capital in accelerating decarbonisation. Part of the funding is being provided by a consortium of 12 national and international financial institutions, led by the International Finance Corporation (IFC) and HSBC, and comprising 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. IFC, which acted as global coordinator and lead arranger alongside HSBC, conducted extensive technical, environmental, and social due diligence. The project will be implemented in line with IFC’s international sustainability and environmental standards. The initiative is also part of the Brazil Climate and Ecological Transformation Investment Platform (BIP), which seeks to mobilize capital for projects supporting Brazil’s climate goals and long-term decarbonization pathway.
“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.”
– Olaf Schmidt, IFC Regional Industry Director for Manufacturing, Agribusiness, and Services in Latin America and Europe.
The project combines renewable fuel production with the development of an integrated agro-industrial ecosystem centred on macaúba, a native Brazilian crop with strong potential as a sustainable biofuel feedstock. In addition to using conventional feedstocks such as soybean oil and used cooking oil, the project plans to cultivate approximately 144,000 hectares of degraded land, with 20% of production linked to partnerships with family farmers and small-scale producers.
Scheduled to begin operations in 2029, the biorefinery will have the capacity to produce around one billion litres of Sustainable Aviation Fuel (SAF) and Renewable Diesel (HVO) annually using Hydroprocessed Esters and Fatty Acids (HEFA) technology. While the biorefinery itself falls outside the scope of the Mitigation Action Facility-funded project, it plays a pivotal role in the overall value chain. As the planned off-taker of the oil produced through the project’s milling operation, the biorefinery will provide a reliable market for the project’s output, significantly reducing demand risk and strengthening the investment’s commercial viability.
“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.”
– Luiz de Mendonça, CEO, Acelen Renewables.
According to Acelen Renewables, the first integrated production unit represents more than USD 3 billion in total investment. During peak construction, the project is expected to generate approximately 3,600 direct and indirect jobs. A study by Fundação Getulio Vargas estimates that the wider value chain could contribute up to USD 40 billion to Brazil’s economy and support around 85,000 direct and indirect jobs over the next decade.
This announcement is particularly significant in the context of the global aviation industry, one of the hardest sectors to decarbonize. For long-haul travel in particular, SAF remains one of the most viable solutions for reducing emissions at scale. Expanding SAF supply, however, requires not only industrial investment, but also the development of new agricultural systems capable of providing sustainable feedstocks at scale.
“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.”
– Alexandre Guião, CEO of HSBC Brazil
Within this broader value chain, the Mitigation Action Facility is supporting the development of the first dedicated macaúba oil-milling infrastructure. This milestone highlights the importance of integrated low-carbon value chains that combine climate benefits with economic development and social benefits. It also demonstrates how targeted support for catalytic infrastructure can help unlock broader private investment and accelerate the transition in hard-to-abate sectors such as aviation.
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