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

Petroleo Brasileiro SA, Brazil’s state-controlled oil company, and Vale SA 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.

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