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Scania and Vale Soluções em Energia S.A. to Collaborate on New Ethanol- and Gas-powered Industrial Engines for Brazil

30 November 2009

Scania and Vale Soluções em Energia S.A. (VSE) have signed a memorandum of understanding to collaborate on the development of new technology for ethanol- and gas-powered industrial engines for the Brazilian market.

VSE is planning to develop and manufacture a series of single-speed engines for stationary operation using Scania’s basic engines as the starting point. The engines will be used for generating electricity and driving pumps and compressors in machinery, for example in the mining industry and agriculture.

The Brazilian market for stationary engines in these segments is estimated at 3,000 engines per year, so a successful partnership between Scania and VSE has major commercial potential.

—Robert Sobocki, Senior Vice President and head of Scania Engines

In addition to supplying basic engines, Scania—which has more than 20 years of experience with ethanol-powered engines—will contribute its expertise in testing and evaluating the new technology.

Vale Soluções em Energia is part of the Brazilian-based Vale Group, one of the world’s largest mining companies. VSE focuses on developing new technological solutions targeting the cleaner utilization of coal as well as renewable fuels.

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