By Brazil Stock Guide – Vale (B3: VALE3) and U.S. locomotive manufacturer Wabtec Corporation (NYSE: WAB) announced on Monday (Oct. 13) a partnership to develop and test a dual-fuel engine capable of running on diesel and ethanol for use on the Vitória–Minas Railway (EFVM). The initiative could lead to the world’s first locomotive powered entirely by ethanol, advancing Vale’s plan to decarbonize its freight operations.
Initial studies will take place at Wabtec’s facilities through 2027, assessing performance, emissions reduction, and the substitution rate between diesel and ethanol. The deal builds on a March agreement in which Vale ordered 50 Evolution Series locomotives designed to operate with up to 25% biodiesel. Both companies plan to raise that share over time, testing broader blends of renewable fuels.
“Innovative initiatives like this are part of Vale’s commitment to accelerate the decarbonization of our rail network,” said Carlos Medeiros, Vale’s executive vice president of operations. “In 2024, our rail operations accounted for 14% of the company’s total carbon emissions.”
“For the first time, Wabtec will use ethanol as an energy source in a locomotive — a milestone for the global rail industry,” said Danilo Miyasato, president and regional leader of Wabtec LATAM. “We’re committed to developing technologies that accelerate the transition to more efficient and sustainable transport.”
Vale has pledged to cut its Scope 1 and 2 absolute emissions by 33% by 2030 and reach net zero by 2050, in line with the Paris Agreement. Using ethanol — a renewable fuel widely available in Brazil — underscores the miner’s role as one of the first in the world to test biofuels at railway scale.
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