ISTANBUL, August 5, 2026 — Abu Dhabi-based Mubadala Capital is investing $3 billion in a project in Brazil to produce sustainable aviation fuel (SAF) from macauba, a relatively little-known tropical fruit.

More than 200 researchers in Minas Gerais are working to develop macauba for commercial-scale production. The project involves plans to cultivate macauba palms across up to 144,000 hectares, an area slightly larger than the city of Los Angeles.

Mubadala Capital’s wholly owned subsidiary, Acelen Renováveis, expects the first trees to begin producing fruit in 2030. The oil extracted from the fruit will be processed into sustainable aviation fuel at a biorefinery being built in Bahia.

Production could nearly double global SAF output

Once operating at full capacity, the biorefinery is expected to produce 20,000 barrels of sustainable aviation fuel per day.

That would represent a significant increase in global SAF production, which stood at approximately 41,000 barrels per day in 2025. Most existing SAF production is currently based on used cooking oil.

Macauba is a palm species native to South America. Its small, plum-sized fruit contains oil-rich flesh that can be processed for fuel production.

According to Acelen Renováveis, macauba can produce seven to 10 times more oil per hectare than soybeans. The company’s agricultural operations director, Victor Barra, has described macauba as the “fruit of the future.”

Project targets degraded pastureland

The macauba trees will be planted on degraded pastureland to avoid competing with food production.

Brazil has approximately 40 million hectares of degraded pastureland, giving Mubadala significant potential to expand the project. The company plans to eventually build up to five biorefineries in the country.

However, macauba production faces several challenges. The trees can be harvested only once a year, while long thorns on their trunks and leaves make harvesting difficult.

Mechanizing the harvesting process is also more challenging than for soybeans and sugar cane, two of Brazil’s major biofuel feedstocks. As a result, macauba production is expected to rely more heavily on manual labor.

Acelen Renováveis has developed equipment for separating the fruit and extracting oil in an effort to reduce logistics costs. The company plans to install these facilities near production areas and transport oil to the biorefinery instead of the fruit itself.

90% of planned fuel production contracted

Acelen Renováveis said it has already signed long-term agreements covering approximately 90% of the fuel expected to be produced at the biorefinery.

Until the macauba plantations reach full maturity, most of the feedstock will come from soybeans and used cooking oil. The facility will also be capable of producing renewable diesel instead of SAF if market conditions favor the more established fuel market.

The project must nevertheless become cost-competitive with soybeans and sugar cane. Rystad Energy Senior Bioenergy Analyst Thiago Sinzato said macauba production costs will need to become more favorable than those of the two competing crops for the project to succeed.

SAF accounted for only 0.6% of global aviation fuel consumption in 2025, making policy support and blending mandates important for the fuel to compete with conventional jet fuel.

European demand provides support

Growing European demand for sustainable aviation fuel is one of the key drivers behind the project.

European regulations aimed at increasing SAF use are expected to create demand well beyond current supplies of used cooking oil and animal fats, which are among the industry’s main feedstocks.

Demand is also expected to increase in Brazil, where airlines will be required to begin reducing emissions from 2027, with the target gradually rising to 10% by 2037.

Growing macauba on degraded pastureland could help Acelen Renováveis meet sustainability requirements for accessing both European and Brazilian markets. However, the company must demonstrate that the land it acquires is genuinely degraded.

Company seeks shorter, thorn-free trees

Acelen Renováveis is currently collecting macauba fruit from naturally occurring populations. Researchers in Minas Gerais have identified 11 tree populations with desirable characteristics for seed production and cloning.

Macauba trees can grow more than 15 meters tall and live for around 100 years. Their fruit grows in large clusters resembling bunches of grapes.

The company is working with universities and consulting firms to develop macauba varieties that are shorter, produce larger fruit, contain more oil and have fewer or no thorns, potentially making commercial harvesting easier.

The project represents a major bet on macauba as a new source of sustainable aviation fuel and could significantly expand Brazil’s role in the global SAF market if the technology and economics prove viable.

Source: Bloomberght/ Prepared by: İlayda Gök