Vale taps Petrobras for decarbonisation fuels

RIO DE JANEIRO, October 21, 2024 – Brazilian mining giant Vale and Petrobras have signed an agreement whereby Petrobras will supply the miner with co-processed diesel and bunkers with renewable content and natural gas, Vale announced on Friday.

The agreement builds on a statement of intentions signed by the companies in September 2023 and aims to test the performance of the three decarbonisation products to potentially develop them for commercialisation.

Petrobras has already begun supplying Vale with Diesel R5, which contains 5% hydrotreated vegetable oil, to conduct performance tests on the Vitória-Minas railroad and at the Fábrica Nova mine, in the Mariana Complex in Minas Gerais. The fuel is manufactured via co-processing in Petrobras’s refineries and can be transported and stored just like conventional diesel.

The companies will explore ways to improve the supply of natural gas to Vale’s operations. Gas is used in the production of pellets and iron ore briquettes for steelmaking.

Petrobras will also provide Vale with a very low sulphur bunker blend containing 24% biodiesel, which will be tested on an iron ore transport vessel currently working for Vale.

“This agreement reinforces Vale’s commitment to promoting the decarbonisation of its operations and offering solutions to reduce its customers’ emissions, thus leveraging Brazil’s competitive edge in renewable fuels,” said Vale CEO, Gustavo Pimenta.

Photo courtesy of Vale

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