• Processing of used cooking oil and vegetable oil
• Offtake agreements into Europe and North America
• Contributing to Europe’s security of supply and the decarbonisation of aviation

KfW IPEX-Bank is playing a leading role as Underwriter in the financing of a plant for the production of sustainable aviation fuel (SAF) in Bahia, in northern Brazil. Client and operator is Acelen Renewables. As Coordinating Lead Arranger and Underwriter in a consortium of local and international banks and DFIs, KfW IPEX-Bank is making a substantial contribution to the total transaction volume of USD 1.5 billion.

The SAF is produced from used cooking oil (UCO) and soybean oil (SBO) both of which are certified in accordance with regulatory requirements. At a later stage, the feedstock will be gradually replaced by locally produced macaúba oil. Using an established technology known as HEFA (Hydrotreated Esters and Fatty Acids), this is converted into sustainable fuel that is approved for the use as a blend in aviation operations.

Following its planned commissioning in 2029, the plant is expected to produce around 20,000 barrels per day (20 kbpd) of SAF and renewable diesel (Hydrotreated Vegetable Oil - HVO). A significant portion of the output is already covered by supply contracts to Europe and North America.

“We are delighted to be part of this groundbreaking financing,” says Dr Velibor Marjanovic, member of the Management Board of KfW IPEX-Bank. “The production of SAF is one of the key building blocks in the transformation of the aviation sector and is essential for achieving its climate targets. Long-term access to these modern and sustainable fuels is of great value to German and European industry.”

“The structuring of this financing confirms the project’s technical, financial, and environmental and social robustness. We are now entering a new phase of large-scale industrial execution,” said Luiz de Mendonça, CEO of Acelen Renewables.

About Acelen Renewables
Acelen Renewables is a renewable energy company of Mubadala Capital, the global alternative asset management firm headquartered in Abu Dhabi, United Arab Emirates, established to actively participate in the global energy transition. The company operates independently from Acelen Mataripe Refinery’s and is developing an integrated ecosystem for renewable fuels production in Brazil, combining agricultural innovation, industrial technology, and the decarbonization of mobility and aviation.