Acelen, the owner of the Mataripe Refinery in Bahia, Brazil has announced that it has signed a Memorandum of Understanding (MoU) with the state government of Bahia for the production of renewable diesel and sustainable aviation fuel (SAF), helping to accelerate Brazil’s energy transition.
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According to a statement, Acelen expects to invest more than BRL 12 billion (≈US$2.4 billion) over the next 10 years in the production of renewable fuels.
Throughout the project duration, the expectation is to produce 1 billion litres of renewable fuels per annum, contributing to the creation of 90,000 direct and indirect jobs generating BRL 85 billion (≈US$17 billion) for the economy, while reducing carbon dioxide (CO2) emissions by replacing fossil fuels.
The company said that it will become one of the world leaders in this segment, from the planting of seeds for high-energy agricultural crops to producing renewable diesel and sustainable aviation fuel (SAF) through the hydrotreatment of vegetable oils and animal fats.
The company is expected to start production in the first quarter of 2026.
Acelen’s path towards energy transition began at the beginning of its operations, with the modernization of the Mataripe Refinery and the reduction of its environmental impact. Now, we are taking a strategic step in our mission to play a leading role in the energy transition in a solid way, with a unique and transformative project, renewing the company’s commitment to a more sustainable future, said Luiz de Mendonça, CEO of Acelen.
Multi feedstock capabilities
In the first phase of the project, soybean oil, and complementary raw materials will be used, as these have the largest available volume and competitiveness in Brazil the country.
In a second phase, macaúba oil — a tree native to Brazil with a high energy potential that has not yet been exploited on a commercial scale—and palm oil will be used, with planting expected to start in 2025.
The project plans include the planting of 200,000 hectares prioritizing degraded land structured to have full synergy with the Mataripe Refinery, and taking advantage of the existing utilities, storage tanks, and logistics infrastructure.
A sustainable hydrogen-generation unit will be built to hydrotreat the feedstocks.
The plan, according to the company, is to start working on the project as early as January 2024.
Target export markets
The production capacity will be 20,000 barrels per day, or around 264 million (US) gallons (≈ 1 billion litres) per annum, placing Acelen among the world’s largest production facilities of renewable fuels.
The production of renewable diesel and SAF will initially be aimed at the foreign market, where these products are already approved for sale and consumption.
We will produce sustainable fuel on a global scale, inserting Brazil into the development of the international sustainable chain. This will be Acelen’s first project in renewable fuels. So, there is room for us to grow globally in this sector. Our focus will be mainly on the foreign market, initially, producing relevant currency for the country. If Brazil moves forward with discussions already underway regarding incentive policies for the production and consumption of renewable fuels in the country, Acelen will be ready to act in the domestic market as well, said Luis de Mendonça.
Invest in feedstock development
Acelen will also invest in genetics, improvement of agricultural productivity, and selection of suitable areas.
An industrial-scale seed-germination laboratory will also be created, making investments in research with a series of public and private institutions inside and outside of Brazil.
In addition to adopting the latest agriculture technology, Acelen said it will develop the oil-extraction process, generating coproducts with high added value and sustainably reusing waste.
