Introduction and Background: The aviation sector urgently needs decarbonisation, with limited alternatives to liquid fuels. Sustainable Aviation Fuel (SAF) offers the most viable pathway yet represents less than 1% of global supply due to high costs and limited infrastructure. This project establishes Brazil’s first industrial-scale Macaúba oil milling facility to enable cost-effective, 2nd generation SAF production. Macaúba, a native non-food crop, delivers net-negative emissions when grown on degraded land. Located in Bahia, the project promotes regional development and a just transition through job creation and private investment. It supports Brazil’s NDC (59–67% GHG reduction by 2035), aligns with the National Biofuels Policy, the National SAF Programme, the Energy Transition Acceleration Programme, the Ecological Transformation Plan, as well as contributes to the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and UNFCCC targets. By scaling a sustainable SAF value chain, the project advances Brazil’s climate neutrality goal and strengthens its global bioeconomy leadership ahead of COP30 in Belem.
Project Goals and Approach to Transformational Change: The project aims to unlock the commercial viability of Macaúba oil as a second-generation SAF feedstock through Brazil’s first industrial-scale extraction facility in Bahia. It introduces modular, high-efficiency milling technology integrating circular economy systems and carbon-smart solutions. These innovations reduce lifecycle emissions, enhance soil health, and create additional value streams. By producing up to 97 million litres of Macaúba oil annually, the project will enable 85 million litres of SAF, achieving up to 80% GHG reduction versus fossil jet fuel and avoiding 326 tCO₂e per year. The initiative promotes inclusive regional development, generating over 5,000 direct and indirect jobs and empowering women and rural communities through targeted GESI measures. This transformative model demonstrates scalable, low-carbon SAF feedstock production, advancing Brazil’s energy transition while positioning the Macaúba value chain as a replicable, carbon-negative solution for the global aviation sector.
Project Components and Support Mechanisms: The project combines Financial Cooperation (FC) and Technical Cooperation (TC) to scale Macaúba-based SAF production in Brazil. The FC component aims to mobilise a €79.9 million blended finance package, including an €18 million MAF grant, €30 million in sponsor equity, and €25 million in concessional finance. It provides affordable capital to de-risk first-mover investment, fund industrial infrastructure, and enable inclusive financial tools such as micro-contracting, gender-responsive credit, and guaranteed offtake for smallholders.
The TC component delivers training, advisory services, and institutional support to cooperatives, financial institutions, and policymakers. Activities include technical training for extraction systems, regulatory readiness, digital traceability, and knowledge exchange with universities. Gender equality and social inclusion are central, supported through flexible training, leadership development, and local outreach.
Together, FC and TC enable a sustainable, scalable SAF ecosystem that enhances productivity, reduces emissions, and strengthens the role of women and rural communities in Brazil’s green industrial transformation.
Mitigation Potential and Long-Term Impact: The projected cumulative direct emission reductions of 1,416,727 tCO2e over the project’s lifetime plus ten years post-project.