Locomotives will be powered by biodiesel - BRAZIL

November 19, 2009 by Fredy at 12:02 Filed under News Course

From Bethlehem - In association with the producer of palm Biopalma Amazon, Vale will, from 2014, diesel locomotives to move their operations in the north of the country and operating equipment for iron ore mines of Carajás (PA ). The consortium will invest $ 500 million in the production system to be the largest producer of palm oil in America. CVRD will invest U.S. $ 305 million in the new partnership, which will have 41% of the capital. The company plans to build a biodiesel plant in Para 2011.

The strategy of the Valley includes replacing 20% of diesel consumed for its 216 locomotives for the North based biodiesel palm oil. The technology of conversion of engines was developed by Valley Solutions Energy (VSE), a company whose capital is divided in half with the BNDES. "We already have biodiesel to run with 3% mixture of diesel, but we need to expand production and to achieve self-sufficiency to 20% in 2014," says the head of the Environment and Sustainable Development of the Valley, Luiz Cláudio Castro.

The planting of oil palm occurs in 130 hectares of six districts of central and northern Para and guarantee to offer the Valley of the entire biodiesel required for its locomotives - 60 hectares will be planted and 70 thousand will be used to reconstruct the legal reserve areas .

In the South, Vale negotiates with Petrobras gas use in locomotives, technology developed by VSE. "I only depend on supply and availability of this gas to include the fuel in our energy transportation," said Castro. CVRD owns 10.2 thousand kilometers of railways, and these rails, carrying grain, oil, chemicals, building materials and all the raw materials for steel.

The company estimates an annual production of 500 thousand tons of palm oil, which should mean 160 thousand tons of biodiesel per year. "The revenue environment is more important than the financial results," says the director of the Valley. "We will make the recovery of legal reserves and permanent preservation areas through this initiative. Are putting out a liability in these areas. "

The company plans to cut 12 million tonnes of CO2 - the equivalent to the pollution caused by 200 thousand cars each year. The consortium expects to generate 6 thousand direct jobs in the areas of production, located in a region responsible for one of the lowest HDI in the country. Have been planted 800 thousand palm trees on 5 hectares in the municipalities of Moju, Discus and Baião. The consortium prepares other 2.3 million seedlings to increase by 12.5 thousand acreage until early 2010. (Source: Economic Value / MZ)