Abu Dhabi’s Mubadala Invests $13.5 Billion in Brazil’s Biofuels Sector

Abu Dhabi’s sovereign investment fund, Mubadala Capital, has unveiled plans for a substantial venture into Brazil’s biofuels industry, signaling a strategic move aimed at capitalizing on the country’s agricultural prowess. With a planned investment of $13.5 billion over the next decade, Mubadala aims to bolster Brazil’s position as a global leader in bioethanol production.

The investment project, spearheaded by Mubadala’s Brazilian operations head, Oscar Fahlgreen, includes the construction of five cutting-edge processing units, each valued at $2.7 billion. These units, expected to begin operations by the end of 2026, are set to significantly ramp up biofuel production, contributing to Brazil’s already robust output.

Part of Mubadala’s investment will involve the conversion of an existing oil refinery in Bahia, acquired in 2021, into a state-of-the-art biofuel facility. This move underscores Mubadala’s commitment to sustainability and its proactive approach to transitioning towards greener energy sources.

Fahlgreen emphasized Brazil’s unique suitability for biofuel production, comparing its agricultural proficiency to Abu Dhabi’s prominence in the oil sector. Despite recent challenges, including crop issues and financial strains, Brazil remains at the forefront of bioethanol production, contributing a substantial share to global output.

In addition to its biofuels venture, Mubadala Capital intends to establish a new stock exchange in Brazil, recognizing the need for enhanced infrastructure in the country’s financial sector. This initiative reflects Mubadala’s broader commitment to fostering economic development and creating new avenues for investment in Brazil.

With its ambitious investment plans, Mubadala Capital aims to capitalize on Brazil’s vast potential in the biofuels sector while contributing to the country’s transition towards a more sustainable energy landscape.