BNDES approves R$258 million for Acelen for innovation and development of macaúba for fuels

By BNDES

October 17, 2024

This is a machine translation of the press release originally published in Portuguese.

The Brazilian Development Bank (BNDES) has approved financing of R$257.9 million for Acelen to implement a technological innovation center – Acelen Agripark – focused on research and development of macauba, a native Brazilian plant with high energy value. The unit is part of the company’s integrated project for the production of renewable diesel (RD) and sustainable aviation fuel (SAF) based on the development of macauba, including its domestication and cultivation on degraded lands. This is the first financing from BNDES aimed at the development of SAF, considered the “fuel of the future”.

With resources from the BNDES Mais Inovação Program, the operation aims to increase productivity and competitiveness in a sector with great export potential. The project will allow the development of new macaúba seedlings and the selection of the stands with the greatest potential for oil production and the structuring of a germplasm bank. The technology will allow the selection of the best plants for seed production, cloning and genetic improvement. “By financing the first SAF project in Brazil, BNDES, under President Lula’s government, is maintaining its relevant contribution to the energy transition, encouraging initiatives that have a social and environmental impact and technological development,” says BNDES President Aloizio Mercadante.

In Montes Claros (MG), the innovation center will be responsible for all research and development necessary to support the fuel biorefinery project. The structure will have the capacity to germinate 1.7 million seeds per month and produce 10.5 million plant seedlings per year. The location was chosen because it has good infrastructure and is close to natural macaúba palms, contributing to competitiveness. The operation of the new unit is expected to create 240 new jobs.

“With this initiative, Brazil is taking an important step towards becoming a major producer of sustainable aviation fuel and positioning itself as a global leader in the climate transition,” says Luciana Costa, Director of Infrastructure, Energy Transition and Climate Change at BNDES, highlighting that the entire project will be implemented on land that has been degraded since 2007. “We are supporting an ambitious project, with a lot of technology and a strong social impact, which can economically transform a region and strengthen Brazil’s image as part of the world’s decarbonization solution,” explains the director.

The technological innovation center is part of an integrated project by Acelen with a total estimated investment of US$ 2.7 billion, providing the production of 20 thousand barrels/day of renewable fuel, capturing almost 60 million tons of CO2 equivalent and generating more than 90 thousand jobs. The strategy, unprecedented for the use of macaúba, also foresees the cultivation of 180 thousand hectares in Minas Gerais and Bahia. In addition, 20% of the total fuel production will come from family farming, benefiting more than ten thousand families in its area of operation.

For Acelen CEO Luiz de Mendonça, Acelen Agripark reinforces the full potential of agro-industrial innovation in the country, which will make the company one of the largest producers of renewable fuels in the world. “We were born with the purpose of actively participating in and accelerating the global energy transition, and now, we are investing heavily in agriculture. In a robust and integrated ecosystem formed by a highly qualified team and experienced partners, we will offer the world a viable and innovative solution that is sustainable from end to end,” emphasizes the executive.