Vale to develop Brazilian palm oil biodiesel project

Brazilian company Vale plans to develop a $305 million (€218 million) palm oil biodiesel project, with the capacity to produce 500,000 tonnes of palm oil and 48 Mgy of biodiesel.

The plant, which is to be completed by 2014, will utilise feedstock produced by a consortium formed between Vale and Biopalma da Amazônia. The biodiesel will be used in a B20 concentration to supply locomotives in the Carajas railroad and mining operations.

Vale will hold a 41% stake in the palm oil consortium.