How BBVA and HSBC are Boosting SAF Production

Article Sustainability How BBVA and HSBC are Boosting SAF Production By Aaron McMillan May 28, 2026 undefined mins Share this article Prioritise Us on Google Share this article Prioritise Us on Google Luiz de Mendonça, CEO of Acelen Renováveis BBVA and HSBC have arranged US$1.5bn in funding for Brazil’s Acelen Renováveis, aiming to scale up sustainable aviation fuel (SAF) production Aviation's path to lower carbon emissions faces more barriers than other transport sectors. Heavy batteries render electrified long-haul flights uneconomical. This has moved attention towards clean-burning fuels. Sustainable Aviation Fuels represent one potential solution. Limited funding and slow policy adoption have restricted their development. BBVA has now arranged a US$1.5bn financing package for Acelen Renováveis, a Brazilian renewable fuels developer within the Mubadala Capital group. The capital will fund a renewable fuels plant in Brazil. This could show progress in SAF and Hydrotreated Vegetable Oil production in the region. "Beyond its scale, the project reinforces SAF as a key lever for the decarbonisation of air transport and helps position Brazil as a market with significant potential in sustainable fuels," says Carlos López Rabadán, Managing Director at BBVA responsible for Project Finance in South America. Carlos López Rabadán, Managing Director at BBVA responsible for Project Finance in South America Blended finance for infrastructure BBVA led a joint financing structure involving international commercial banks and development finance institutions. HSBC and the International Finance Corporation, a World Bank Group institution, participated in the transaction. The bank combined financial instruments to manage risks linked to large-scale infrastructure projects. This coordination between multilateral institutions and commercial lenders could reflect a pattern in sustainable finance. "Our participation underscores the bank's ability to structure highly complex financial solutions and to support our clients in projects with long-term impact," says Carlos. "By supporting one of the first SAF facilities in Latin America at this scale, we seek to demonstrate commercial viability, reduce risks and lay the groundwork for replicable investments in the region," says Olaf Schmidt, Regional Director for Manufacturing, Agribusiness and Services for Latin America and Europe at IFC. Olaf Schmidt, Regional Director for Manufacturing, Agribusiness and Services for Latin America and Europe at IFC Plant capacity and employment The funding will enable Acelen Renováveis to build a plant with an estimated daily capacity of 20,000 barrels of SAF and HVO. The biorefinery will occupy an existing industrial site in Bahia, northeast Brazil. According to the company, the project is expected to create up to 3,600 direct and indirect jobs. Acelen Renováveis plans to cultivate 1,440 square kilometres of degraded land. The company will allocate 20% to partnerships with family farms and small producers. "This model seeks to combine productive regeneration, social inclusion and decarbonisation, aligned with global best practices in sustainability and low-carbon development ," the company says. "The Acelen Renováveis ​​project is an example of how industrial innovation and sustainable development, including significantly in the agribusiness sector, can mutually reinforce each other, generating quality jobs, strengthening agricultural value chains and accelerating Brazil's transition to a more resilient economy," says Olaf. Market access and execution The plant's output will primarily serve European and US markets. Regulatory frameworks and corporate demand for SAF are increasing in both regions. Brazil is emerging as a hub for sustainable fuels. This transaction could integrate it further into the global green supply chain. "The structuring of this financing confirms the technical, financial and socio-environmental robustness of the project. We are now entering a new phase of large-scale industrial execution," says Luiz de Mendonça, CEO of Acelen Renováveis. "BBVA has been a key strategic partner in structuring and enabling this financing, demonstrating deep commitment to the project and to the advancement of sustainable finance. Together, we are advancing one of the most relevant initiatives for the future of aviation and contributing meaningfully to the acceleration of the global energy transition," says Luiz. Alexandre Guião, CEO of HSBC Brazil First global SAF transaction This deal marks BBVA's first global transaction in the SAF segment. Financial institutions face growing pressure to align with net-zero goals. Banks are moving from general green bonds to targeted, technology-driven project finance. "This operation reinforces our commitment to supporting clients and partners in the energy transition, connecting global financing to transformational projects with long-term economic, social and environmental impact," says Alexandre Guião, CEO of HSBC Brazil. "This transaction represents a significant step for BBVA in advancing its commitment to the energy transition within an emerging market such as SAF," says Carlos. Company portals BBVA-Banco Bilbao Vizcaya HSBC International Finance Corporation (IFC) Executives Alexandre Guião CEO, Brazil Carlos López Rabadán MD, Head Project Finance South America Olaf Schmidt Regional Director for Manufacturing, Agribusiness and Services for Latin America and Europe Tags Sustainable Aviation Fuel green financing SUSTAINABLE FINANCE Brazil