Vale has signed a “protocol of intent” with one of the largest oil and gas producers in the world, Petrobras, to develop low carbon solutions that could see the two assess joint decarbonisation opportunities, including the development of sustainable fuels – such as hydrogen, green methanol, biobunkers, green ammonia and renewable diesel – and C02 capture and storage technologies.
The agreement, which takes advantage of the technical expertise of both companies and their synergies, also includes potential commercial agreements for the supply of low-carbon fuels produced by Petrobras to be used in Vale’s operations, which could contribute to the company’s commitment to reducing its greenhouse gas emissions.
Eduardo Bartolomeo, Vale’s CEO (on the right), said: “Brazil has all the necessary conditions to lead a large-scale development of low-carbon solutions and renewable fuels, such as green hydrogen and green methanol. Vale is firmly committed to reducing its carbon footprint and wants to be a protagonist in this journey, leveraging relevant actions for the energy transition in Brazil. This agreement with Petrobras fits perfectly into this context.”
Petrobras President, Jean Paul Prates (on the left), added: “Petrobras’ partnership with Vale will be strategic in driving the country’s energy transition. These are the two biggest Brazilian powers joining forces around a common purpose: to develop the most modern solutions to reduce greenhouse gas emissions. We are going to leverage the production capacity, logistical structure and technological expertise of two national giants to boost the production and supply of more efficient and sustainable fuels. This is what we can call being a first mover to materialise our decarbonisation strategy, creating demand and scale for low-carbon solutions.”
This partnership, Vale says, can help it achieve its commitment to reduce its absolute Scope 1 and 2 emissions by 33% by 2030 and achieve neutrality by 2050, in line with the Paris Agreement.