Acelen Renováveis closed a $1.5 billion syndicated loan to fund the first phase of a new Sustainable Aviation Fuel (SAF) and renewable diesel facility in Bahia. Coordinated by HSBC and the International Finance Corporation (IFC), the debt package funds a 20,000-barrel-per-day biorefinery slated for commercial operation in 2029.

The planned output of one billion liters annually will dwarf domestic demand. Brazil's "Fuel of the Future" law forces airlines to cut emissions starting in 2027, a mandate already altering route economics. Yet Acelen structured this operation for export. Local airlines are managing federal budget freezes and high litigation costs. They lack the margins to absorb early SAF premiums. Acelen is targeting buyers in Europe and North America where subsidies are entrenched.

Locking in the supply chain

Processing one billion liters of fuel requires 1.1 million cubic meters of feedstock every year. Acelen secured 90% of its initial requirement through bilateral agreements to avoid spot market volatility.

Used Cooking Oil (UCO) will make up roughly 60% of the early feedstock. Trafigura agreed to supply 470,000 tons of UCO annually. In exchange, the commodities trader holds preferential off-take rights for the resulting SAF and renewable diesel. This closed-loop arrangement guarantees a buyer on day one.

Bunge will provide the remaining immediate volume. The agricultural trader signed a five-year contract to supply 300,000 tons of certified soybean oil annually. This represents Bunge's largest single soybean oil contract in South America.

The native palm transition

Soybean oil and UCO provide the initial scale. The project's long-term margin depends on macaúba. The native Brazilian palm yields up to ten times more oil per hectare than soybeans and tolerates arid climates. Acelen plans to plant 180,000 hectares of macaúba on degraded pastureland across Bahia and Minas Gerais, aiming to make it the primary feedstock by 2032.

To monetize the carbon offset in Western markets, the company contracted European startup Finboot to build a blockchain tracking system. The ledger records data from seedling germination through refining, generating the cryptographic proof required for international environmental certification.

Compliance risks and state intervention

Two variables threaten the 2029 launch timeline.

First, the IFC financing requires adherence to strict social performance standards. Local Quilombola communities report that Acelen's early agricultural activities in the Recôncavo Baiano region blocked access to historical routes and fishing grounds. The Federal Public Ministry opened investigations into potential violations of consultation rights. Failure to resolve these land disputes could trigger cross-default clauses in the syndicate agreement.

Second, the political environment around the Mataripe site is shifting. Acelen’s parent company, Mubadala Capital, bought the adjacent Mataripe Refinery from Petrobras in 2021. The current administration intends to increase state involvement in the refining sector. Petrobras petitioned antitrust regulators to annul the 2021 sale and is currently negotiating a buyback or joint venture.

While Petrobras advances its own $1 billion SAF plant in São Paulo, Mubadala has invited the state oil company to co-lead the green biorefinery in Bahia. Acelen management maintains the SAF project will proceed on the back of the secured syndicate loan regardless of who ultimately controls the legacy fossil fuel asset next door.