Brazil’s Petrobras is looking to invest in Mubadala’s biofuel project: Mubadala Capital — the USD 20 bn asset management arm of the UAE’s investor Mubadala Investments — signed an MoU with Brazil’s state-owned energy giant Petrobras to explore potential partnership in a Mubadala biofuel project under development in Brazil’s northeastern state of Bahia, Wam reports. The green fuel that will be produced in Bahia will be derived from a native Brazilian crop called Macauba.

Petrobras wants to repurchase the refinery from Mubadala: The new biofuels partnership could open the door to future talks for Petrobras to repurchase the refinery from Abu Dhabi’s Mubadala, two sources told Reuters. Petrobras’ management has been looking to repurchase the refinery this year after selling it under a previous government in 2021 for USD 1.65 bn, the sources said. Petrobras had agreed with Brazil’s regulator Cade to sell its refineries outside the states of Rio de Janeiro and São Paulo.

There are other agreements in place: Abu Dhabi’s Mubadala Capital-backed Acelen said it will invest up to USD 2.4 bn over the next 10 years to produce green diesel and sustainable aviation fuel in Bahia. The new biorefinery will have the capacity to produce up to 1 bn liters per year of hydrotreated vegetable oil (HVO), a diesel-like fuel that can be produced from various vegetable oils and animal fats. Production will start in the first quarter of 2026, the company statement said at the time, adding that the plan will make Acelen one of the largest producers of renewable fuels globally. That project will use infrastructure from Acelen's Mataripe refinery, formerly known as Rlam, which Petrobras sold to Mubadala in 2021.

It's not only Petrobras: Mubadala Capital also plans to acquire a 31.5% stake in Brazilian sugarcane processor Atvos later this year or early next year, Atvos CEO Bruni Serapiao told Reuters last month. He said that his company is under bankruptcy protection, with Mubadala set to pay BRL 500 mn (c. USD 102.8 mn) when it lifts its court debt protection.

The UAE 💚 Brazil: Brazilian President Lula da Silva and UAE President Sheikh Mohamed bin Zayed Al Nahyan are looking to deepen partnerships between the two countries in key sectors including renewable energy, sustainable development, climate action, food security, and agriculture, a joint statement following Lula’s visit to Abu Dhabi said.

And wants to expand its biofuel partnerships even further: The UAE officially joined the newly launched Global Biofuels Alliance founded by India, the UK, and the US last July. The alliance — formed during a G20 clean energy ministerial meeting — aims to “accelerate sustainable biofuels deployment in support of the global energy transition.” The formal launch of the Global Biofuels Alliance is scheduled to take place at the G20 Leaders’ Summit in New Delhi this Saturday.

Why Brazil? Brazil has the capabilities to become among the leading global players in sustainable aviation fuel, Reuters reported last month, citing Boeing's Latin America and the Caribbean head Landon Loomis. “Brazil has the technical capacity, qualified workforce and raw material to post the concrete results and impacts needed for us to solve together this global challenge of how to decarbonize aviation,” Loomis said.