– Mubadala Capital, a subsidiary of Abu Dhabi’s Mubadala Investment Company, plans a $13.5 billion investment in Brazil’s biofuels sector over the next decade.

– This investment includes the construction of five $2.7 billion biorefinery modules by its energy company, Acelen, with production expected to begin by the end of 2026.

– Mubadala Capital also intends to convert an existing oil refinery in Bahia, Brazil, acquired from Petrobras in 2021, with funding for the $13.5 billion investment to be sourced through a mix of equity and debt over five to ten years.

Mubadala Capital, a subsidiary of Abu Dhabi’s sovereign investor Mubadala Investment Company, announced plans to invest $13.5 billion in Brazil’s biofuels sector over the next decade. 

This strategic move aligns with Abu Dhabi’s broader initiatives for the Latin American giant, including the establishment of a new stock exchange.

In an interview with the Financial Times, Oscar Fahlgren, Mubadala Capital’s head of Brazil, unveils a significant development by its energy arm, Acelen. 

This project involves the construction of five $2.7 billion modules, each housing a biorefinery with a daily fuel processing capacity of 20,000 barrels, set to commence production by the end of 2026.

Mubadala Capital plans to lead the conversion of an existing oil refinery in Bahia, Brazil, acquired from Petrobras in 2021. Fahlgren outlines that the $13.5 billion investment will be financed through a combination of equity and debt over five to 10 years.

Mubadala Capital aims to establish a stock exchange in Brazil next year through its acquisition of Americas Trading Group in 2023. 

Fahlgren emphasizes the need for enhanced infrastructure in Brazil’s financial sector, stating, “Brazil is a very large country. It has only one stock exchange. And I think that’s suboptimal infrastructure for the players that operate in this segment.”

Fahlgren reveals Mubadala Capital’s involvement in discussions regarding a proposed new football league in Brazil, aimed at commercializing the sport’s rights.