The Abu Dhabi sovereign wealth fund’s investment arm, Mubadala Capital, plans to make a substantial investment in biofuels in Brazil, the Financial Times has reported, quoting the head of Mubadala’s Brazilian operations. The $13.5-billion investment in biofuels is part of a broader investment plan for Brazil that may also include setting up a new stock exchange in the country, Oscar Fahlgren told the FT. “It’s all about feedstock in reality is agriculture.
Part of the total biofuel investment will be used for the conversion of an oil refinery into a biofuel plant, the head of Mubadala’s Brazilian operations also said. The Emirati company bought the refinery, in Bahia, back in 2021. “It’s a very important capital project,” Fahlgren noted. “I see tremendous opportunity to invest in the green energy transition space in Brazil.” Brazil is the world’s biggest producer of bioethanol, accounting for a fifth of the global output.