Petrobras Inks Deal to Supply Vale with Fuel with Renewable Content
10.21.2024 By Tank Terminals - NEWS

October 21, 2024 [Reuters]- Petrobras has agreed to sell diesel with renewable content to Vale, the two Brazilian giants said on Friday, in a deal that might also include the supply of other low-carbon fuels going forward.

 

The agreement marks a concrete effort by miner Vale to decarbonize its operations, as well as a win for state-run oil firm Petrobras in its efforts to develop a market for the sustainable fuels it produces.

Petrobras and Vale are two of Latin America’s largest companies by market value.

“The partnership with Vale is yet another achievement for Petrobras in its goal of improving its production capacity and logistics structure to supply greener products to the market,” Petrobras CEO Magda Chambriard said.

The agreement will initially cover the supply of diesel with renewable content for the mining giant’s trucks and locomotives, and might eventually be expanded to marine fuel with 24% of renewable content and natural gas.

Reuters first reported the agreement earlier on Friday, citing sources familiar with the matter.

Petrobras is able to provide marine fuel with up to 24% of renewable content, and diesel with 5%, Chambriard said last week, when she mentioned that a deal with Vale was in the works.

The deal is also a milestone for Vale’s new leadership as the firm, one of the world’s largest iron ore producers, tries to improve its relationship with the Brazilian government, which has pressured it to invest more in the country.

Former finance head Gustavo Pimenta took over as chief executive earlier this month, replacing Eduardo Bartolomeo. Analysts have highlighted that improving ties with the government would be a key goal for the new CEO.

“We are very happy to announce this broad partnership with Petrobras, which brings benefits to both companies and creates value for Brazil,” Pimenta said in a statement.

 

Free Trial: Access 13,300 Tank Terminal and Production Facilities

13,300 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data

Tepsa Netherlands nears completion of expansion, adding nine new storage tanks
02.14.2025 - NEWS
Tepsa Netherlands is set to complete its latest storage capacity expansion, adding nine new stora... Read More
MOL Group Successfully Tested the Production of HVO and SAF at Eastern European Refinery
02.14.2025 - NEWS
February 14, 2025 [Hydrocarbon Processing]- MOL Group has produced a diesel fuel containing hydro... Read More
Verso Energy Plans €1.4bn e-SAF Production Facility in Finland
02.14.2025 - NEWS
February 14, 2025 [H2 View]- French company Verso Energy has agreed to build a hydrogen processin... Read More
PBF Refineries to Operate Up to 76% of Capacity in Q1
02.14.2025 - NEWS
February 14, 2025 [Hydrocarbon Processing]- Independent U.S. refiner PBF Energy plans to operate ... Read More