Latin America’s sustainable aviation fuel industry is beginning to move from announced projects to investment commitments and commercial production. An ALTA/ICF study identified more than 1.9 billion gallons of proposed SAF capacity but no final investment decisions as of November 2025. Developments at Acelen Renewables and Petrobras in Brazil during 2026 mark an important change, although much of the region’s planned industrial capacity has yet to enter operation.
A 1.9-billion-gallon pipeline still awaiting investment
Latin America and the Caribbean entered 2026 with a substantial portfolio of sustainable aviation fuel projects but limited evidence of committed industrial capacity. The ALTA/ICF report Net Zero Aviation in Latin America and the Caribbean: Pathways and Trade-offs, dated March 2026, identified more than 1.9 billion gallons of announced production capacity. As of November 2025, none of the projects surveyed had reached a final investment decision (FID), and very few had received substantial investment at the feasibility stage.
The ALTA/ICF inventory, compiled in October 2025, covered projects in Brazil, Argentina, Colombia, Chile and Panama. Brazil accounted for the largest number of announced facilities, reflecting its established ethanol and biodiesel industries and access to agricultural feedstocks. Other proposals relied on technologies ranging from hydroprocessed esters and fatty acids (HEFA) to Alcohol-to-Jet (AtJ) and Power-to-Liquid (PtL).
The distinction between announced capacity and operational supply is fundamental. A final investment decision signals a formal commitment to proceed with a project, but financing, construction, commissioning and commercial production remain separate milestones. The ALTA/ICF study explicitly warns that announced capacity does not necessarily translate into operating facilities.
Acelen turns financing into an industrial commitment
Acelen Renewables reached a major financing milestone in May 2026 for its planned biorefinery in São Francisco do Conde, in Brazil’s Bahia state. The Mubadala Capital-backed company announced a US$1.5 billion financing package to begin construction, supported by a consortium led by HSBC and the International Finance Corporation (IFC). The project reached its final investment decision in May, according to Mission Possible Partnership.
Acelen Renewables plans to produce up to one billion litres annually of sustainable aviation fuel and renewable diesel combined, using HEFA technology. Operations are scheduled to begin in 2029. The US$1.5 billion financing package forms part of a broader integrated development involving more than US$3 billion in investment, including agro-industrial activities.
Commercial arrangements are another distinguishing feature of the Bahia project. Acelen Renewables reported in May 2026 that approximately 90% of the planned commercialisation of its SAF and renewable diesel had already been structured and signed. The company also identified agreements with businesses including Trafigura, Moeve, Bunge and BGN.
The Acelen development illustrates how securing future buyers, feedstock supply and financing can help transform a proposed facility into an industrial investment. Commercial readiness is becoming as important as announced production volume.
Petrobras approves another major investment
Petrobras confirmed a second major Brazilian investment decision on 19 June 2026. The company’s board approved the RPBC Biorefining project at the Presidente Bernardes Refinery in Cubatão, São Paulo state, with an estimated investment of approximately US$1.2 billion.
The Petrobras RPBC project involves a dedicated facility capable of producing up to 15,000 barrels per day of biojet fuel and renewable diesel combined. Petrobras expects construction to begin by the end of 2026, with operations scheduled to start in 2030. The approved investment will allow the company to proceed with the final contracting and execution stages.
The investment decisions announced by Acelen Renewables and Petrobras represent a change from the situation documented in the ALTA/ICF study. By June 2026, at least two major Brazilian projects had crossed the FID threshold identified as missing from the regional portfolio in November 2025. Their announced production capacities, however, remain future targets rather than volumes already available to airlines.
Commercial SAF production has already begun
Petrobras has also advanced through a different production route: integrating renewable feedstocks into existing refining infrastructure. On 5 December 2025, the company announced the first deliveries of domestically produced, sustainability-certified SAF, comprising 3,000 cubic metres supplied to aviation fuel distributors serving Rio de Janeiro’s Galeão International Airport. The fuel was produced through coprocessing at the Duque de Caxias Refinery.
On 17 June 2026, Petrobras announced another milestone at the Duque de Caxias Refinery, in Rio de Janeiro state. The company completed production and commercialisation of a 3.8-million-litre batch of aviation fuel containing 1% renewable content, using soybean oil supplied by Bunge and certified under the CORSIA Low ILUC Risk framework. Vibra handled distribution. Petrobras identified the operation as its first batch using soybean oil with this specific certification.
The 3.8-million-litre figure refers to the entire blended fuel batch, not to 3.8 million litres of pure renewable fuel. Coprocessing also differs from the dedicated plants planned by Acelen Renewables and Petrobras at Cubatão: the process incorporates renewable feedstocks into existing petroleum-refining operations, enabling initial commercial supply without waiting for new biorefineries to enter service.
What makes a SAF project bankable?
The ALTA/ICF study identifies several obstacles preventing announced SAF projects from reaching investment approval. High production costs, limited access to affordable capital, technological uncertainty and insufficient bankable demand make long-term commercial commitments difficult to secure. The report estimates that SAF can cost between three and twelve times as much as conventional jet fuel, depending on the production pathway and market conditions.
Technology selection adds another layer of risk. ALTA/ICF identifies HEFA as the most commercially mature pathway, although its expansion is constrained by the availability of suitable feedstocks. Alternative technologies such as Alcohol-to-Jet offer longer-term potential but face additional development and financing challenges.
Financing structures are particularly important for capital-intensive biorefineries. The ALTA/ICF study explains that lenders may typically provide between 60% and 80% of project capital, with equity investors supplying the remainder. Investors must assess technological performance, regulatory requirements, future demand and expected returns before committing capital.
The Brazilian projects illustrate two ways of addressing these barriers. Acelen Renewables has combined financing with substantial commercial commitments, while Petrobras has approved investment in dedicated production alongside initial commercialisation through existing refinery assets. Neither approach removes the need to secure sustainable feedstocks, meet certification requirements and deliver fuel at commercially viable prices.
From investment decisions to industrial scale
Latin America’s SAF industry has begun to move beyond the stage described in the ALTA/ICF study. Acelen Renewables and Petrobras have announced final investment decisions for major Brazilian biorefineries, while Petrobras has demonstrated that certified fuel can already reach the market through coprocessing.
The next challenge is industrial execution. Acelen Renewables targets operations in 2029, while Petrobras plans to commission its Cubatão facility in 2030. Both projects must still translate financing and engineering commitments into completed facilities, reliable feedstock supply and sustained production.
Latin America’s SAF transition is no longer defined solely by the volume of projects announced. The more consequential measure is how much of that pipeline can become financed, certified and commercially available fuel.
How much SAF production capacity has been announced in Latin America and the Caribbean?
The ALTA/ICF study identified more than 1.9 billion gallons of announced production capacity in its 2025 project assessment. The figure represents proposed capacity, not operational output.
Which Brazilian SAF projects reached final investment decisions in 2026?
Acelen Renewables reached FID for its Bahia biorefinery in May 2026, while Petrobras approved the RPBC Biorefining project in Cubatão on 19 June 2026.
Has commercial SAF production already started in Brazil?
Yes. Petrobras announced its first deliveries of domestically produced, certified SAF in December 2025 and commercialised a soybean-based batch with 1% renewable content in June 2026. Both operations used coprocessing at the Duque de Caxias Refinery.
Why are SAF projects difficult to finance in Latin America?
The ALTA/ICF study identifies high production costs, uncertain demand, financing risks, technology maturity and sustainable feedstock availability as major obstacles to securing investment.
