Acelen Renewables, backed by Mubadala Capital, has entered into a five-year agreement with global agribusiness leader Bunge Global S.A. for the annual supply of 300,000 metric tons of certified soybean oil to support renewable fuel production in Brazil. The contract, totaling more than 1.5 million metric tons, will commence in 2029, coinciding with the start-up of Acelen Renewables' biorefinery in Bahia.
The soybean oil, sourced from Brazil and Argentina, will be converted into Sustainable Aviation Fuel (SAF) and Hydrotreated Vegetable Oil (HVO) renewable diesel, making the project the first large-scale SAF and HVO production facility in South America. The feedstock is expected to meet stringent sustainability and traceability standards certified by the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board (CARB), strengthening its acceptance in international low-carbon fuel markets.
The agreement represents the largest soybean oil supply contract ever signed by Bunge in South America, highlighting the company's growing role in supporting global decarbonization efforts. Besides soybean oil, Acelen Renewables has also secured used cooking oil (UCO) supplies while developing a long-term macaúba feedstock value chain to diversify raw material availability and improve supply resilience.
The partnership aligns with rising global demand for sustainable aviation fuels as governments and airlines accelerate net-zero commitments. According to industry estimates, SAF could contribute nearly two-thirds of aviation's required carbon emission reductions by 2050. By integrating certified agricultural feedstocks with renewable fuel production, the collaboration is expected to strengthen Brazil's position as a major exporter of sustainable fuels while encouraging regenerative agriculture and traceable supply chains across the soybean sector.
The companies also intend to explore additional renewable feedstocks in the future, creating new opportunities for farmers and expanding South America's renewable energy ecosystem.
Impact on Product and Chemical Commodity Prices
The long-term supply agreement secures a reliable source of certified soybean oil for Acelen Renewables' biorefinery, supporting stable production of Sustainable Aviation Fuel (SAF) and renewable diesel (HVO) from 2029. The project is expected to strengthen Brazil's renewable fuels industry, expand SAF availability, improve feedstock traceability, and promote sustainable agricultural practices. It also reinforces Brazil's position as a key supplier of low-carbon fuels to global markets.
From a commodity perspective, the deal is expected to provide moderate long-term price support for soybean oil as renewable fuel demand increases. Used Cooking Oil (UCO) prices may also remain firm as producers diversify feedstock sourcing. Demand for vegetable oils and renewable diesel feedstocks is likely to strengthen, reducing downside price risks. Meanwhile, higher renewable diesel production could increase crude and refined glycerine supply, creating mild downward pressure on glycerine prices if demand growth lags. The agreement is unlikely to materially affect conventional diesel prices before commercial operations begin in 2029.
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