Status: Approved
Timeframe: 2026-2029
Area: District of Mataripe, Municipality of São Francisco do Conde in Bahia State, Brazil
AIIB Investment Amount: 100 million USD
Total Project Cost: 1,3-1,4 billion USD (Discrepancies in the figures: The AIIB cites 1.4 trillion USD, while the IDBI cites 1.3 billion USD)
Co-financier: ICF, IDBI
E&S Category: A
Project details: The project involves the construction of a biorefinery complex in Bahia, Brazil, with a HEFA (Hydro-processed esters and fatty acids) plant to produce 20,000 barrels per day of Sustainable Aviation Fuel and Renewable Diesel for global markets.
Project Concerns:
Land acquisition
The project raises concerns about potential land acquisition (ESS2) for the construction of access roads and the installation of a high-voltage distribution line, which is to be completed before the project becomes operational. The project includes additional associated infrastructure, including a new gas pipeline operated by Companhia de Gás da Bahia (Bahiagás).
Environmental
The HEFA plant and pipelines are located within areas of natural habitat and will result in the loss of about 1,500 trees. The HEFA plant will also use soybean oil, which is linked to deforestation in the Brazilian rainforest (ESS1).
Other concerns
The borrower, Acelen Industrial S.A., already operates the Mataripe refinery in Bahia, Brazil, and is a major player in the downstream sector. Mataripe accounts for about 14% of Brazil’s national diesel production capacity and Acelen plans to further invest in the unit. The company was founded by Mudabala Capital, the asset management arm of the United Arab Emirates sovereign wealth fund. The fund continues to invest in oil and gas (see urgewald GOGEL).
Further information:
AIIB-Page
IFC-Page
IDBI-Page
Last update: 26.06.2026