Petrobras to produce soy oil, diesel mix

June 2, 2006
Brazil's Petroleo Brasileiro SA (Petrobras) said it would introduce a pioneering low-sulfur diesel production technology involving vegetable oils at two refineries by 2008.

Peter Howard Wertheim
OGJ Correspondent

RIO DE JANEIRO, June 2 -- Brazil's Petroleo Brasileiro SA (Petrobras) said it would introduce a pioneering low-sulfur diesel production technology involving vegetable oils at two refineries by 2008.

Paulo Roberto Costa, Petrobras downstream director, told a press conference the H-Bio technology will combine diesel fractions from distillation, cracking, and delayed coking with soy oil and hydrogen as raw materials to produce high-quality diesel with mineral fuel qualities.

"We'll be planting diesel from now on," Costa said. "It's a very positive marriage between agriculture and oil."

Brazil is already a pioneer in mass use of sugar cane-based ethanol as a vehicle fuel.

Costa said the new diesel plan would run parallel with regular biodiesel output programs and traditional petroleum diesel production. Brazil will blend 2% biodiesel with normal diesel starting in 2008.

Petrobras has tested the process at its 145,000-b/d refinery in Minas Gerais state, using a blend of as high as 18% of soy oil with mineral raw materials and hydrogen in the hydrotreatment unit.

"Economically, the test was very positive, showing a very interesting price composition. Basically, it was cheaper (than the normal process)," Costa said.

Petrobras plans to use 10% soy oil in the two refineries where the technology will be installed next year and in 2008. The program should be expanded to five refineries in the following few years.

As opposed to biodiesel, which requires special transesterification plants and additional storage capacities, the new process can be carried out at existing refineries next to soy producing areas and needs only additional amounts of hydrogen, which is already used in the process.

The refineries in the southern states of Parana and Rio Grande do Sul, which are both big soy producers, will be the first to have the technology in addition to the Minas Gerais facility where tests have been conducted.