Portugal, Brazil court investors for European sustainable fuel plants

Portugal and Brazil on July 16 courted Brazilian investors for one or two advanced biofuel and sustainable aviation fuel plants in Portugal and Europe. The push comes as EU airports move under ReFuelEU Aviation toward a 2% SAF mandate in 2025 and 6% in 2030.

The financing effort points to a wider shift in biofuels: capital, feedstock and project ownership are increasingly crossing the Atlantic with the molecules. Europe’s aviation mandate rises to 20% SAF in 2035 and 70% by 2050, creating a long-dated demand signal for project developers that still face high capital costs, tight feedstock competition and bankability hurdles around offtake.

Brazil brings scale to the pitch. USDA Foreign Agricultural Service said in its August 31, 2024 Biofuels Annual that Brazil was the world’s second-largest ethanol producer and third-largest biodiesel producer, but had not yet introduced renewable diesel or SAF. That gives Brazilian groups a domestic operating base in ethanol and biodiesel, while also leaving room to move up the value chain into HEFA, renewable diesel and jet fuel projects outside Brazil.

Portugal is trying to position itself as the European entry point. Reuters reported on June 17, 2026 that the country planned fast-track areas for wind and solar projects, a signal that Lisbon wants to accelerate low-carbon infrastructure permits. For Brazilian investors, Portugal offers a familiar language and commercial bridge into an EU market where airline and airport fuel buyers will need certified SAF volumes for years.

The opportunity has already pulled in larger energy names. Reuters reported on June 21, 2024 that BP would evaluate expanding and diversifying its biofuel operation in Brazil into second-generation ethanol and sustainable jet fuel. Reuters reported on June 19, 2026 that Petrobras approved a $1.2 billion investment in a renewable fuels plant. Reuters also reported on July 14, 2026 that Energis8 was targeting annual SAF output of 1 billion liters.

Those moves show why Portugal and Brazil are now trying to assemble a transatlantic investor base for European plants. The sector’s next buildout will depend less on whether policy exists than on who can finance conversion units, secure feedstock and lock in airline offtake under a market where EU airports already face a binding SAF runway.