en.Wedoany.com Reported - Acelen Renováveis (an energy company under Mubadala Capital) has reached a strategic agreement with Trafigura (one of the world's largest independent commodity trading companies), under which Trafigura will supply feedstock to and sell the renewable fuels produced by a biorefinery currently being developed in the state of Bahia. The agreement is seen as a key milestone for the project's advancement, following Acelen Renováveis' announcement of securing $1.5 billion in financing, indicating that the plant is ready for construction. This biorefinery, utilizing HEFA (Hydroprocessed Esters and Fatty Acids) technology, will have an annual production capacity of up to 1 billion liters of SAF (Sustainable Aviation Fuel) and HVO (Renewable Diesel).
Under the terms of the agreement, Trafigura will intervene in two segments of the value chain: feedstock supply and the sale of future products. This integrated model aims to enhance operational predictability, improve feedstock supply security, and reduce project implementation and operational risks. The contract stipulates that Trafigura will supply approximately 470,000 tons of Used Cooking Oil (UCO) annually, an amount sufficient to produce about 459 million liters of SAF. In exchange, Trafigura will purchase a portion of the future production of SAF, HVO, and green naphtha (a renewable naphtha used to produce gasoline and renewable plastics), with these products primarily destined for the North American and European markets.
The SAF and HVO that Trafigura will purchase amount to approximately 5,500 barrels per day, enough to meet the fuel demand for up to six daily flights on the São Paulo to Paris route.
All products sold under the agreement will comply with international sustainability and traceability standards of major global markets, including ISCC EU certification and requirements set by the U.S. Environmental Protection Agency (EPA). Cristiano da Costa, Vice President of Commerce and Trading at Acelen Renováveis, stated that Trafigura's participation validates a key model for the biorefinery's success, combining certified feedstock supply with end-market access. Having a global partner operating on both ends of the value chain brings greater predictability, reduces execution risk, and helps build a robust, long-term commercial platform.
Sebastian Jaworski, Head of Oil Trading for Latin America at Trafigura, noted that the growth of the sustainable fuels market presents a significant opportunity for Brazil. By combining the large-scale production capacity of the Bahia biorefinery with Trafigura's expertise, the market reach of these products will be expanded, helping more companies advance their decarbonization goals. Acelen Renováveis has already secured approximately 90% of the contracts needed for the biorefinery's operations, including feedstock supply agreements and long-term offtake contracts, primarily targeting the U.S. and European markets. The agreement with Trafigura further underscores the importance of one of the world's largest renewable fuel projects and strengthens Acelen Renováveis' strategy of building an integrated commercial platform, supported by global leading partners across different supply chain and distribution segments.
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