Bunge will supply soy oil to Acelen Brazil's sustainable aviation fuel project

Executives from both companies confirmed that Acelen Renovaveis - an energy company backed by Abu Dhabi’s Mubadala Capital - has signed a five year agreement with the agribusiness giant Bunge for 1.5 million metric tons of soy oil. The contract is to supply the oil as part of a project in Brazil’s Bahia State, which will produce sustainable aviation fuel (SAF) and a renewable diesel (HVO). Bunge has agreed to supply 300.000 metric tons of certified soy oil annually starting in 2029 when Acelen’s biorefinery will begin operations.

Acelen will invest more than $3 billion into the project. It is estimated that it will produce 1 billion liters per year of SAF and HVO. According to Bunge, the agreement is Bunge’s largest soy oil supply contract for South America.

Bunge Commercial Director Tito Martinho stated that 'the company is Brazil’s largest soybean processor and the contract volume is about 15% of Brazil's domestic soy oil capacity.

Acelen Commercial and Trading Vice-President Cristiano da Costa stated that the contracted volume will cover approximately 30% of the feedstock needed to start the Biorefinery.

Costa stated that another 60% of the used cooking oil (UCO) has been secured, including?supplies by commodity trader Trafigura as well as an undisclosed supplier. The remaining 10% were intentionally left open so that the company could develop other feedstocks.

Costa stated that the plant is designed to "eventually" use macauba palm oil, which Acelen has been developing. However, Costa added that it will be gradually integrated 'from 2032.

Around 88% of future production?has been sold on long-term contracts to customers mainly in Europe and America. Acelen will initially focus on exports, but is also in talks with Brazilian buyers because the demand for SAF should increase under Brazil's new "Fuel of the Future".

(source: Reuters)