By Irina Slav – Would possibly perchance perhaps merely 06, 2024, 2:30 AM CDT
The Abu Dhabi sovereign wealth fund’s investment arm, Mubadala Capital, plans to make a pleasant investment in biofuels in Brazil, the Financial Instances has reported, quoting the head of Mubadala’s Brazilian operations.
The $13.5-billion investment in biofuels is share of a broader investment conception for Brazil that will also encompass constructing a current inventory alternate in the country, Oscar Fahlgren told the FT.
“It’s all about feedstock [which] the truth is is agriculture. And Brazil is perhaps the finest-positioned country on the earth when it involves agricultural potential as a result of native climate and the fertile soil,” Fahlgren outlined. “Brazil is to agriculture what Abu Dhabi is to grease.”
The conception involves the construction of 5 processing devices, every with a group up designate of $2.7 billion and a potential of 20,000 barrels of biofuel each day. The principle of these devices is predicted to start working by the stop of 2026.
Half of the total biofuel investment would perhaps be former for the conversion of an oil refinery into a biofuel plant, the head of Mubadala’s Brazilian operations furthermore talked about. The Emirati company sold the refinery, in Bahia, serve in 2021.
“It’s a undoubtedly vital capital mission,” Fahlgren famend. “I perceive neatly-organized opportunity to make investments in the inexperienced energy transition characteristic in Brazil.”
Brazil is the arena’s ideal producer of bioethanol, accounting for a fifth of the global output. On the assorted hand, in most up-to-date years the biofuel trade in the country has viewed some setbacks much like sad harvests of sugarcane, subsidies for gasoline, and monetary considerations.
Yet manufacturing has remained solid, at 409,000 barrels of oil identical each day in 2022, which used to be up from 391,000 barrels of oil identical a yr earlier.
Mubadala has had a presence in Brazil for over a decade, correct via varied industries. It is no longer doing it alone, both. Per the FT, two-thirds of Mubadala’s capital in Brazil comes from external traders.
By Irina Slav for Oilprice.com
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Irina Slav
Irina is a author for Oilprice.com with over a decade of skills writing on the oil and gas trade.
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