Vale, Petrobras establish strategic alliance for decarbonisation

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Vale and Petrobras will enhance competitiveness and advance decarbonisation by testing and marketing renewable diesel, natural gas, and sustainable bunker fuel.

Vale, Petrobras establish strategic alliance for decarbonisation
Petrobras’ CEO Magda Chambriard (at left) and Vale’s CEO Gustavo Pimenta hold a sample of Diesel R. © Carlos Eduardo Livino / Agência Petrobras

Vale and Petrobras announced on Friday the signing of a Strategic Alliance Agreement aimed at enhancing competitiveness while advancing their decarbonisation agenda.

This agreement builds on the protocol of intentions the two companies signed in September 2023 and establishes the framework for testing and potentially marketing three key products: co-processed diesel with renewable content, natural gas, and a bunker fuel containing 24% renewable content. These products were selected based on collaborative studies conducted by both companies.

The alliance will also focus on developing more competitive models for supplying natural gas, a vital component for producing pellets and iron ore briquettes. The latter, developed by Vale, plays a crucial role in promoting decarbonisation within the steel industry.

In addition, the agreement includes provisions for Petrobras to provide a very low-sulphur bunker blend containing 24% biodiesel for testing on an iron ore transport vessel operated by Vale.

Locomotive in the Vitória-Minas Railway / Photo: Judeu Marc / Vale

Industrial testing of R5 diesel underway

The first initiative under the agreement has already commenced with the supply of renewable content diesel (Diesel R5) from Petrobras.

This product began being supplied to Vale in the second week of October for industrial-scale testing along the Vitória-Minas Railroad and at the Fábrica Nova mine within the Mariana Complex in Minas Gerais, Brazil.

Diesel R5 is an S10 diesel that includes 5% HVO (hydrotreated vegetable oil) in its formulation.

It is produced by co-processing oil derivatives with plant-based raw materials, resulting in a product that matches the technical specifications of mineral diesel while achieving a 60% reduction in carbon intensity in its renewable portion.