Petrobras, Vale May Join to Make Brazil Palm Oil and Biodiesel

Petroleo Brasileiro SA, Brazil’s state-controlled oil company, and Vale SA (VALE3) are discussing a partnership to produce palm oil and biodiesel in the northern state of Para.

Both companies are currently developing separate biodiesel projects in the state, Rio de Janeiro-based Petrobras said today in a statement.

Petrobras’s biofuels unit said it will build a 230 million- liter (60.7 million-gallon) a year biodiesel facility in Para in its five-year plan for 2012-16, according to the statement. Vale plans to produce biodiesel from the palm oil in the region and mix it with regular diesel to fuel its Brazil operations from 2015, Petrobras said.

To contact the reporter on this story: Stephan Nielsen in Sao Paulo at snielsen8@bloomberg.net

To contact the editor responsible for this story: Tina Davis at tinadavis@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.