Vale and Petrobras announced the signing of a Strategic Alliance Agreement to test and potentially market three strategic products: co-processed diesel with renewable content, natural gas, and bunker fuel with 24% renewable content.
The selection of these products stems from joint studies conducted by both companies. Initial actions under the agreement have commenced with the supply of Diesel R5 to Vale for industrial testing on the Vitória-Minas Railroad and at the Fábrica Nova mine.
Diesel R5 is an S10 diesel with 5% HVO (hydrotreated vegetable oil) in its composition. It is produced by co-processing oil derivatives with raw materials of plant origin, resulting in a product with identical technical specifications to mineral diesel and 60% less carbon intensity in the renewable portion.
The agreement provides for collaboration on more competitive models for the supply of natural gas, an essential input for the production of pellets and also iron ore briquettes. Furthermore, the alliance provides for Petrobras to sell a very low-sulphur bunker blend with 24% biodiesel for testing on an iron ore transport vessel working for Vale.
Vale’s CEO, Gustavo Pimenta, emphasized the partnership’s benefits for both companies and its contribution to Brazil’s competitive edge in renewable fuels.
Meanwhile, Petrobras’ CEO, Magda Chambriard, highlighted the alliance as a key step in Petrobras’ decarbonization strategy, improving its production capacity and logistics for greener products. The Diesel R5 being developed is an S10 diesel mixed with 5% hydrotreated vegetable oil (HVO), produced through co-processing methods to reduce carbon intensity significantly.
