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. The MoU was signed by the companies’ presidents James Pessoa and Leif Östling, in the presence of Brazil’s Minister of Mines and Energy, Edson Lobão and Sweden’s Minister for Enterprise and Energy, Mrs Maud Olofsson.

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 3000 engines per year, so a successful partnership between Scania and VSE has major commercial potential,’ says Robert Sobocki, CEO of Scania Engines.

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

Brazil has a large supply of raw materials such as sugar cane that are used in making alternative fuels that have very low climate impact and do not conflict with food production.

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