Mubadala Invests $3B in Bahia Biorefinery for Sustainable Energy Expansion

03 Sep, 2024

Mubadala Invests $3B in Bahia Biorefinery for Sustainable Energy Expansion

Mubadala Capital is shifting its focus to a biorefinery project in Bahia after deciding to exit the Mataripe refinery. The project will primarily use macaúba, a native plant of Brazil's Cerrado, as raw material. Mubadala has begun discussions with potential international partners to develop the biorefinery, with plans to lay the cornerstone by year-end.

The company has also initiated construction of a technology and innovation center in Minas Gerais and secured funding from BNDES for the Bahia unit. As part of the shift, Mubadala is negotiating with Petrobras to exit the Mataripe refinery, where it prefers to hold a majority stake.

Sources indicate that the change in Petrobras’s strategy to retain its refineries influenced Mubadala's decision. In parallel, Mubadala and Petrobras have signed an MoU to explore joint opportunities in the biorefinery sector, which could focus on producing renewable diesel and sustainable aviation fuel.

The estimated $3 billion investment over ten years includes planting macaúba and developing production centers. If Petrobras joins the biorefinery project, it would support its renewable energy transition, though it remains uncertain whether the state-owned company will prioritize this partnership or focus on its own green projects.