Portuguese 
English 
Spanish 
3 min of reading 
1 comment 
Mubadala Capital, from the Arab royal family known as the ‘Oil Magnates,’ is now looking to invest billions of reais in biofuels production in Brazil.
Mubadala Capital, based in Abu Dhabi, plans to allocate about US$ 13.5 billion (equivalent to about R$ 68.3 billion) to an ambitious biofuels project in Brazil over the next ten years. This investment from the ‘Oil Magnates’ is part of a broader strategy in the country, which also includes the initiative to establish a new stock exchange.
Mubadala Capital Will Focus on Biofuels for Aircraft
The information was disclosed, for the first time, in an interview with the Financial Times, by the head of Mubadala Capital in Brazil. According to the announcement, the full budget for its main project to produce renewable diesel and “sustainable” aviation kerosene – The biofuels, mainly using non-food plant material, will be divided into modules that seek to align industrial plants with agricultural areas for raw material supply for production.
The project of the ‘Oil Magnates’ is bold and shows the Arab Royal Family’s goal to invest in Brazilian agribusiness.
-
SpaceX sets share price at $135 and targets a historic $75 billion IPO to debut on Nasdaq with a trillion-dollar market value
-
While the world rushes to mine lithium from Congo and Chile, Brazil sits on one of the largest reserves and has barely begun to explore.
-
Heir worked at thirteen in an ice cream factory without revealing he was the owner’s son; today, at twenty-five, he leads the best-selling ice cream brand for home consumption in the Northeast, grosses almost R$ 300 million, has 145 stores, and competes with multinationals with regional flavors.
-
Lock manufacturer from Rio Grande do Sul invests R$ 150 million to surpass R$ 1 billion in revenue, create 200 jobs, and double storage capacity, while choosing Santa Catarina to set up a new logistics center and speed up deliveries in Southern Brazil.
Mubadala Capital’s asset management division is intensifying its presence in the largest economy in Latin America. Its investments span a variety of sectors, including metro systems, higher education institutions in the health sector, and a majority stake in the company that holds the Burger King brand in Brazil, in a partnership that includes Jared Kushner, son-in-law of Donald Trump.
The large-scale development of its energy company, Acelen, will comprise 5 modules of US$ 2.7 billion, with the first expected to begin production by the end of 2026. Each of these modules will consist of a new biorefinery capable of processing 20,000 barrels of biofuels daily, with infrastructure linked to planted areas to cultivate the raw material.
Mubadala Capital Has Already Invested US$ 6 Billion in Biofuels in Brazil
According to the head of Mubadala Capital in Brazil, Oscar Fahlgren, it’s all about raw material that is, in fact, agriculture. And Brazil is probably the best-positioned country in the world when it comes to agricultural proficiency due to its climate and fertile soil.
The ‘Oil Magnates’ plan to convert an existing oil refinery in Bahia, Brazil, purchased from Petrobras in 2021. The company will invest US$ 13.5 billion over 5 to 10 years, funded by a combination of equity and loans, according to Oscar.
This is an extremely important capital project, emphasizes the executive, highlighting the great investment opportunity in the transition to green energy in Brazil, with biofuels. The initial investment in biofuels was only a part of the total development cost announced by Mubadala Capital.
The ‘Oil Magnates’ focus on biofuels is supported by US$ 6 billion already invested in the country, which represents about a quarter of their global portfolio. Two-thirds of the company’s capital in Brazil comes from external investors, with the remainder from Mubadala.
Mubadala’s Trajectory in Brazil
The sovereign fund entered Brazil in 2012, investing US$ 2 billion in Eike Batista’s companies before his downfall. It then became the primary creditor of Batista’s EBX group, taking ownership of significant assets including stakes in ports and mines.
Currently, Mubadala Capital owns assets in Brazil, such as the organization of the São Paulo Formula 1 Grand Prix. Fahlgren describes the company’s approach in the country as contrary, remaining steadfast during economic and political crises over the past decade. The company also closed its second fund focused on Brazil, accumulating US$ 710 million in commitments in the last year.
A produção de biodiesel está engatinhando no Brasil, mas com investimentos dessa monta e com a experiência desse grande grupo, vemos a possibilidade de novos tempos na perdição de combustíveis e outras energias no nossos país.