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Acelen Invests $2.44 Billion in Renewable Diesel Biorefinery

Written by Bruno Teles
Published on 17/04/2023 at 15:50
diesel renovável
ACELEN – diesel renovável (foto/divulgação)
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Acelen, An Energy Company Supported by Mubadala Capital, Recently Announced an Investment of US$ 2.44 Billion in Renewable Diesel Businesses in Brazil.

The company’s goal is to become a global leader in this sector, producing diesel and “Green” Aviation Fuel starting in 2026. The new biorefinery, which the company intends to start building in January 2024, will have the capacity to produce 1 billion liters per year of hydrotreated vegetable oil (HVO), a diesel-like fuel made without fossil resources that comes from vegetable oils and animal fat.

Brazil as a Strategic Supplier of Renewable Fuels

The project reinforces Brazil’s role as a strategic supplier of renewable fuels, capitalizing on its abundant natural resources. Brazil already produces soy-based biodiesel and ethanol from sugar and corn, and now Acelen aims to produce renewable diesel from vegetable oils and animal fat.

Initially, soybean oil will be the main raw material for the plant, potentially making Acelen Brazil the largest individual buyer of this commodity. The plant will require up to 900 thousand tons of soybean oil per year. Additionally, there should initially be an annual consumption of 100 thousand to 150 thousand tons of corn oil and animal fat.

Existing Infrastructure for Renewable Diesel Production

Marcelo Cordaro, Vice President of New Businesses at Acelen, stated that the new biorefinery will utilize the existing infrastructure at the Mataripe plant, including tanking and logistics, and the port terminal for exporting new fuels.

This unit, which accounts for 14% of Brazil’s oil refining capacity, was acquired from the state-owned company Petróleo Brasileiro by Mubadala in 2021. With the new biorefinery, Acelen could become one of the main players in the global renewable diesel market.

Renewable Diesel Export

Initially, Acelen anticipates that all its production of renewable fuels will be exported, as there is currently no regulation in the Brazilian market that allows sales in the domestic market. However, the Brazilian market is beginning to encourage this type of fuel, and Acelen is considering the possibility of participating in this market in the future. The company aims to become a global player in the renewable diesel market, and believes it is already competitive enough to operate abroad.

Commitment to Sustainability

In addition to boosting the renewable fuel market, Acelen is committed to sustainability and the environment. The company is investing in research to reduce greenhouse gas emissions and contribute to the transition to a low-carbon economy. The production of renewable diesel is one way to achieve this goal, as the fuel will emit less greenhouse gases than traditional diesel.

The investment by Acelen in renewable diesel businesses is an important step for Brazil to become a strategic supplier of renewable fuels. Additionally, the initiative demonstrates the company’s commitment to sustainability and the transition to a low-carbon economy. With the new biorefinery, Acelen intends to become a global player in the renewable diesel market, exporting its production to various countries. This is an important step for Brazil to become a leading country in renewable fuels.

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Bruno Teles

Falo sobre tecnologia, inovação, petróleo e gás. Atualizo diariamente sobre oportunidades no mercado brasileiro. Com mais de 7.000 artigos publicados nos sites CPG, Naval Porto Estaleiro, Mineração Brasil e Obras Construção Civil. Sugestão de pauta? Manda no brunotelesredator@gmail.com

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