Acelen and Bunge sign contract for the production of SAF and renewable diesel

Acelen Renováveis and Bunge announced the signing of a five-year contract for the supply of certified soybean oil that will be used in the production of SAF (Sustainable Aviation Fuel) and HVO (Renewable Diesel).

The agreement provides for the supply of 300 thousand tons of input per year, totaling 1.5 million tons during the term of the contract.

Supply will begin in 2029, when Acelen Renováveis' first integrated biorefinery is expected to come into operation, with an investment of more than US$3 billion.

The unit, located in Bahia, will have the capacity to produce up to 1 billion liters of SAF and HVO per year. The companies' expectation is that the location of the biorefinery will allow the processing of different renewable raw materials, with logistical gains for the operation.

According to a statement, soybean oil may originate in Brazil and Argentina and must meet the certification requirements of the United States Environmental Protection Agency and the California Air Resources Board, with a focus on traceability and compliance with international standards.

This is the largest soybean oil supply contract ever signed by Bunge on the continent. The project also marks the implementation of a unit focused on large-scale SAF and HVO production in South America.

In addition to soybean oil, Acelen Renováveis' supply strategy includes contracts for the acquisition of used cooking oil and the development of a macaúba production chain, a raw material expected to be part of the supply of the future biorefinery.

In a statement, the Commercial and Trading Vice President of Acelen Renováveis, Cristiano da Costa, stated that the agreement guarantees part of the certified raw materials necessary for the operation of the unit and increases the availability of renewable fuels for the national and international markets.

For Bunge's Commercial Director, Tito Martinho, the partnership integrates supply and demand for low-carbon products and could increase Brazil's participation in the renewable fuels market, meeting international traceability and sustainability requirements.

The companies also reported that the agreement establishes a basis for future initiatives involving other renewable raw materials and agricultural crops.

Source: CNN