Context
The aviation sector urgently requires decarbonisation, yet alternatives to liquid fuels remain limited. Sustainable Aviation Fuel (SAF) is currently the most viable pathway but accounts for less than 1% of global supply due to high production costs and insufficient infrastructure. This project addresses this gap by developing Brazil’s first industrial-scale Macaúba oil milling facility in Bahia. Macaúba is a native, non-food crop that can be cultivated on degraded land and offers net-negative emissions potential.
The project supports Brazil’s Nationally Determined Contribution (NDC) commitment of 59–67% GHG reduction by 2035, aligns with national energy transition policies (such as National Biofuels Policy, the National SAF Programme, the Energy Transition Acceleration Programme, the Ecological Transformation Plan), and contributes to international frameworks (such as the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and UNFCCC targets).
Goals and approach to transformational change
The “Decarbonising Aviation: Innovative Macaúba Oil Milling for Scalable and Commercially Viable Sustainable Aviation Fuel” (“Brazil – Sustainable Aviation Fuel”) project aims to establish the commercial viability of Macaúba oil as a second-generation SAF feedstock through Brazil’s first industrial-scale extraction facility. It deploys modular, high-efficiency milling technology with circular economy components to reduce lifecycle emissions and enhance soil health.
With an annual production capacity of up to 97 million litres of Macaúba oil, enabling around 85 million litres of SAF, the project can achieve up to 80% GHG savings compared to fossil jet fuel. Beyond mitigation impact, the project builds a scalable value chain model, mobilises private investment, creates over 5,000 jobs, and integrates targeted GESI measures – laying the groundwork for replication and long-term market development in Brazil and beyond.
Components and support mechanisms
The project combines Financial Cooperation (FC) component and Technical Cooperation (TC) component to scale Macaúba-based SAF production in Brazil.
The FC component aims to mobilise a EUR 79.9 million blended finance package, including an EUR 18 million Mitigation Action Facility grant, EUR 30 million in sponsor equity, and EUR 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 component and TC component 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.
Long-term impact
The projected cumulative direct emission reductions of 1,416,727 tCO2e over the project’s lifetime plus ten years post-project.