Vale invests in biodiesel

Panorama

Publishing Date: 29 Jun 2009 4:02pm GMT
Author: Mining Magazine

Loading & Hauling

Vale has announced a project to produce biodiesel to supply its operations in the Northern region of Brazil, from 2014 onwards. The project will use palm oil as raw material, which will be produced by a consortium between Vale and Biopalma da Amazônia S.A.

Vale holds a 41% stake in the consortium, whose goal is to produce 500,000t/y of palm oil. The oil produced by the venture will be used to feed Vale’s biodiesel plant, which will be 100% built and operated by the company, and will have an estimated capacity of 160,000t/y of biodiesel. Vale’s total investment in the consortium and the building of the biodiesel plant will be approximately US$305million.

The biodiesel will be a B20 mix (20% of biodiesel and 80% of ordinary diesel), and will be used to supply Vale’s fleet of locomotives at the Carajás railroad and the majority of equipment at the Carajas mines, located in the Brazilian state of Para.