Brazil’s Investment in Sustainable Aviation Fuel and the Advancement of Its Energy Transition
Provided by Bruno Mendes with Basch & Rameh Advogados Associados
Last year Brazil inaugurated a technological innovation center dedicated to the production of sustainable fuels, including Sustainable Aviation Fuel (SAF), based on the cultivation of a palm tree native to the tropical and subtropical regions of Brazil, locally known as macaúba (Acrocomia aculeata). The project, financed in part by the Brazilian Development Bank (BNDES), represents the largest biorefinery hub specifically focused on the industrial use of macaúba as a feedstock for biofuel production.
The initiative is supported by significant international investment, including approximately US$3 billion from the Emirati sovereign wealth fund Mubadala Investment Company. Such investments have the potential to strengthen Brazil’s position in the global sustainable fuels market at a time when the search for alternatives to fossil fuels and the protection of the environment have become central topics in international policy debates. These issues were prominently discussed during the recent COP30, held in Belém, in the Brazilian state of Pará.
- Biofuel production frommacaúba relies on the oil extracted from its fruit, which has a high energy yield. This crop can produce up to five tons of oil per hectare, making it a particularly promising feedstock for large-scale biofuel production.
The development of macaúba-based fuels represents an important step in Brazil’s broader energy transition, particularly with regard to the aviation sector. Brazil has recently adopted a national regulatory framework aimed at promoting sustainable aviation fuels through the National Sustainable Aviation Fuel Program, established by Law No. 14,993/2024. This program requires airlines operating in Brazil to progressively reduce greenhouse gas (GHG) emissions from domestic flights by incorporating SAF into their fuel mix. The regulation establishes a gradual reduction pathway, beginning with a 1% emissions reduction requirement in 2027 and reaching 10% by 2037.
Although fuel derived from macaúba oil is not yet available at commercial scale, the investments currently being directed toward its development may become an important driver for the diversification of biomass sources used in the production of sustainable fuels. In the longer term, such initiatives may contribute to strengthening Brazil’s role as a global supplier of renewable energy solutions while supporting the decarbonization of the aviation industry.