Vale and Petrobras discuss partnership on palm oil biodiesel production

The Brazilian mining giant Vale and the state-run oil company Petrobras have started talks on partnership for a palm oil biodiesel production at one of Vale’s plants in the northern state of Pará. Vale has agreed to invest US$500 million in the plant, which is due to start operations by 2015. The company aims to meet demand for B20 (20% biodiesel and 80% regular diesel) in its locomotive fleet, machinery and equipment. Vale is responsible for about 3% of Brazil’s diesel consumption.
Petrobras, a subsidiary of Petrobras Biocombustível, is also building a biodiesel plant in the same state; the plant will have a production capacity of 230 million liters per year of biodiesel to serve Petrobras’s fuel needs in Brazil’s northern region. The company estimates the use of B20 will cut its CO2 emissions by 20 million tons over the next 25 years. The two companies are also looking for other areas on which they can work together. (August 16, 2012)