Petrobras has entered into an agreement to supply Brazilian mining company Vale with diesel that includes renewable content.

The agreement, which marks a significant step towards the decarbonisation of Vale's operations, may also extend to other low-carbon fuels in the future.  

This partnership will test three strategic products: co-processed diesel with renewable content, natural gas, and bunker fuel with a 24% renewable mix.

These products were selected based on joint studies between the two companies, following a protocol of intentions signed in September 2023.

The products outlined in the agreement, including co-processed diesel, natural gas, and bunker fuel.

The initial phase of the agreement will supply Vale's trucks and locomotives with renewable diesel, with the possibility of extending to marine fuel containing 24% renewable content and natural gas in the future.

Vale CEO, Gustavo Pimenta said: “We are very happy to announce this broad partnership with Petrobras, which brings benefits to both companies and creates value for Brazil.

“The 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.”

Under the agreement, the two companies will cooperate to create more competitive supply models for natural gas, a vital component in the production of iron ore pellets and briquettes.

The first initiative under this agreement has already commenced, with Petrobras supplying Vale with Diesel R5. This fuel is an S10 diesel blended with 5% hydrotreated vegetable oil, produced by co-processing oil derivatives with plant-based materials.

Diesel R5 maintains the same technical specifications as its mineral counterpart but boasts a 60% reduction in carbon intensity for the renewable component.

Petrobras president Magda Chambriard said: “We are developing ever greener fuels and honouring our commitment to decarbonise our activities.

“The partnership with Vale is yet another realisation of Petrobras' goal of improving production capacity and the company's logistics structure to deliver to the market greener products such as Diesel R and reinforce our decarbonisation strategy.”