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Brazil's Petrobras and miner Vale have decarbonization partnership in works

Published 10/14/2024, 03:16 PM
Updated 10/14/2024, 03:20 PM
© Reuters. FILE PHOTO: Brazil's state-run oil company Petrobras logo is pictured at its building in Rio de Janeiro, Brazil July 17, 2023. REUTERS/Ricardo Moraes/File Photo
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RIO DE JANEIRO (Reuters) - Brazil's Petrobras is discussing a partnership with Vale to help the mining company lower carbon emissions, the state-run oil firm's Chief Executive Magda Chambriard said on Monday.

WHY IT'S IMPORTANT

The two Brazilian companies are among the largest in Latin America by market value.

Chambriard said the firms will "help each other" decarbonize, with a possible deal in which Petrobras would supply marine fuel and diesel with renewable content for Vale to run its railways, ships and trucks.

KEY QUOTE

"It's an effort by the two largest companies in Brazil towards decarbonization," Chambriard told journalists.

BY THE NUMBERS

Petrobras is already able to provide marine fuel with up to 24% of renewable content, and diesel with 5%, said Chambriard.

ADDITIONAL CONTEXT

© Reuters. FILE PHOTO: Brazil's state-run oil company Petrobras logo is pictured at its building in Rio de Janeiro, Brazil July 17, 2023. REUTERS/Ricardo Moraes/File Photo

Both Vale and Petrobras are looking for ways to reduce carbon emissions from their operations, with Vale resorting to batteries and renewable energy in its effort.

Petrobras believes it could reach net zero carbon emissions by 2035, said Chambriard, but maintained that its formal commitment is still to do so by 2050.

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