Brazil to invest $3 bln in aviation fuel production from macauba palm

Brazilian company Acelen Renováveis, owned by UAE investment fund Mubadala Capital, plans to produce sustainable aviation fuel (SAF) from macauba palm fruit. The total investment in the project is estimated at $3 bln, Bloomberg reported.

Under the project, the company plans to plant up to 144 thsd hectares of degraded pastureland with macauba palms in the state of Minas Gerais. The first trees are expected to begin bearing fruit around 2030, with the feedstock to be processed at a new plant currently under construction in the state of Bahia.

Once fully operational, the facility will be able to produce 20 thsd barrels of SAF per day. For comparison, total global sustainable aviation fuel production last year was around 41 thsd barrels per day, meaning the single facility could produce an amount equivalent to almost half of current global output.

According to the company, macauba can produce 7–10 times more oil per hectare than soybeans. However, analysts note that the project’s commercial success will depend on its cost competitiveness compared with biofuel production from soybeans and sugarcane. Until the macauba plantations reach maturity, the plant will use soybeans and used cooking oil as feedstocks.

Acelen has already signed long-term contracts covering almost 90% of its future production. Macauba palm (Acrocomia aculeata) grows in the West Indies and western South America. Its fruit is rich in oil, which has traditionally been used in soap production and is now being considered as a promising feedstock for sustainable aviation fuel.

Tags: biofuel