Vale and Wabtec to test ethanol use in locomotives on Brazil’s Vitória-Minas Railway

Vale and Wabtec launch studies to test ethanol-diesel dual-fuel engines for locomotives on the Vitória-Minas Railway, advancing Vale’s decarbonization goals in Brazil.

Mining giant Vale S.A. (NYSE: VALE) and U.S. locomotive manufacturer Wabtec Corporation have announced a new partnership to explore the use of ethanol as an alternative fuel in locomotives operating on the Vitória-Minas Railway (EFVM), one of Brazil’s most important freight corridors.

The initiative focuses on developing and testing a dual-fuel engine capable of running on both diesel and an ethanol-diesel blend, marking another step in Vale’s broader decarbonization program for its logistics operations.

Laboratory tests and decarbonization goals

According to Vale, initial laboratory studies will validate the technical concept, evaluating parameters such as performance, emissions reduction, and the ethanol substitution rate. The testing phase is expected to continue through 2027, after which the company will assess large-scale implementation in its EFVM fleet.

The use of ethanol—a **renewable biofuel widely produced in Brazil—**could significantly reduce the carbon footprint of Vale’s rail operations, which accounted for 14% of the company’s total CO₂ emissions in 2024.

“This collaboration with Wabtec strengthens our commitment to developing innovative, low-emission technologies for rail transport,” said Carlos Medeiros, Vale’s Executive Vice President of Operations. “Adopting alternative fuels such as ethanol is key to accelerating the decarbonization of our railway network.”

A broader partnership with Wabtec

The ethanol project builds on earlier sustainability efforts between the two companies. In March 2025, Vale and Wabtec signed an agreement for the purchase of 50 Evolution Series locomotives, designed to operate with up to 25% biodiesel blended with diesel. The partners intend to gradually increase the share of renewable fuels in their fleet over the coming years.

“Together, Vale and Wabtec are driving the future of low-carbon freight,” said a Wabtec spokesperson. “Ethanol offers a promising path forward, especially in Brazil, where renewable fuel infrastructure is already well established.”

Advancing sustainable logistics

The Vitória-Minas Railway, which connects the state of Minas Gerais to the port of Vitória in Espírito Santo, transports iron ore, steel products, and general cargo across more than 900 kilometers. The adoption of ethanol-powered locomotives could make it one of the most sustainable heavy rail systems in Latin America.

This new phase of collaboration underscores Vale’s strategy to cut its Scope 1 and 2 emissions by 33% by 2030 and reach net zero by 2050, aligning with global sustainability goals and Brazil’s leadership in renewable energy innovation.