Biodiesel and Ethanol Investing

Reuters reports that Brazilian miner Vale will save an estimated $150 million in fuel costs starting in 2014 by producing its own palm-oil based biodiesel. The $500 million joint venture between Vale and Biopalma da Amazonia will produce 160,000 tons of biodiesel annually, eventually providing 20% of diesel consumption in its northern system. Vale’s direct of Energy Vania Somavilla said biodiesel currently available on the Brazilian market is made from soy, which is considerably more expense to produce. The biodiesel will be used to power a fleet of 216 trains in its northern system operations along with heavy equipment used the massive Carajas mine.