Acelen Renewables, Bunge sign agreement for production of renewable fuels using certified soybean oil

Photo: Acelen Renewables

Acelen Renewables, an energy company owned by Mubadala Capital, announced in July that it and Bunge, a global leader in agribusiness, food and ingredients, have signed a five-year agreement for the supply of 300,000 metric tons of certified soybean oil annually, totaling more than 1 million tons over the term of the contract.

Beginning in 2029, when the company’s biorefinery is expected to start operations in Bahia, Brazil, the soybean oil will be used to produce sustainable aviation fuel (SAF) and renewable diesel.

“This is the first large-scale SAF and renewable diesel production project in South America, marking a milestone not only for the region’s agribusiness sector but also for Brazil as a whole,” Acelen Renewables stated.

The agreement is the largest soybean-oil supply contract ever executed by Bunge on the continent, according to Acelen Renewables.

The supply can be sourced from Brazil and Argentina, and Acelen Renewables said it anticipates it will be certified by both the U.S. EPA and the California Air Resources Board for traceability and compliance with stringent international sustainability standards.

The partnership comes at a time of rapidly expanding global demand for low-carbon fuels.

Driven by decarbonization commitments made by airlines, governments and international organizations, SAF production is widely recognized as one of the primary pathways for reducing emissions from the aviation sector.

According to the International Air Transport Association, SAF potentially could account for approximately 65 percent of the emissions reductions needed for aviation to achieve net-zero emissions by 2050.

In this context, Bunge acts as a strategic partner of Acelen due to its central role in the soybean value chain, which enables the company to connect producers with other industry stakeholders while pioneering the delivery of innovative solutions.

For Acelen Renewables, this synergy represents an important step in building an integrated feedstock-supply platform for its future biorefinery.

“This agreement reinforces Acelen Renewables’ strategy of developing a robust supply chain, securing part of the certified feedstock required to support biorefinery operations and enable large-scale renewable fuel production in Brazil,” said Cristiano da Costa, the vice president of commercial and trading at Acelen Renewables. “Access to certified feedstocks is essential to ensuring competitiveness, traceability and operational reliability at the biorefinery. It also expands the availability of low-carbon fuels for both domestic and international markets.”

The company’s strategy is based on a diversified portfolio of renewable feedstocks, providing greater operational flexibility and supply security.

In addition to certified soybean oil, Acelen Renewables has already secured agreements for the supply of used cooking oil (UCO) and is advancing the development of a structured macaúba production chain, a feedstock that will serve as the foundation of the company’s long-term project.

Acelen Renewables said its commitment to sourcing feedstocks with the highest environmental-compliance standards is aligned with Bunge’s sustainability practices.

In 2015, Bunge became the first company in its sector to voluntarily commit to achieving deforestation-free supply chains by 2025.

In 2024, it was also the first agribusiness company to achieve traceability and monitoring of 100 percent of its direct and indirect soybean purchases in priority regions in Brazil.

In addition, through its regenerative-agriculture program, Bunge provides technical assistance, tools, products and services to farmers, increasing the availability of traceable and certified feedstocks, which support efforts to reduce the agriculture industry’s environmental footprint.

“By integrating demand and supply for low-carbon products, we connect the entire value chain to invest alongside farmers in building a higher-value regenerative agriculture model,” said Tito Martinho, the commercial director at Bunge. “We act as a facilitator, bridging financing partners and on-the-ground agricultural realities, helping to support the future of agriculture as sustainable, profitable and scalable.”

According to the executive, the partnership with Acelen Renewables “is expected to position Brazil as an important partner in both domestic and international renewable fuels markets. We are ready to support our customers throughout this journey, meeting a wide range of traceability and sustainability requirements around the world.”

This partnership establishes the foundation for a long-term strategic collaboration between the two companies.

The combination of Bunge’s global-sourcing capabilities and Acelen Renewables’ feedstock-diversification strategy is expected to enable both companies to explore new opportunities involving additional crops and renewable feedstocks.

With investments exceeding $3 billion, Acelen Renewables’ first integrated facility will have the capacity to produce 1 billion liters (264 million gallons) of SAF and renewable diesel annually.

The project represents one of the largest renewable fuels investments currently under development in Brazil and will help drive a new industrial value chain focused on the energy transition and the low-carbon economy.

The strategic location of the future biorefinery should enable the intake of multiple renewable feedstocks, improving logistics efficiency and strengthening the project’s overall competitiveness.