Petrobras has signed an agreement to supply Vale with diesel containing renewable content, with potential to expand to other low-carbon fuels, according to Reuters.

“The partnership with Vale is yet another achievement for Petrobras in its goal of improving its production capacity and logistics structure to supply greener products to the market,” Petrobras CEO Magda Chambriard said.

The agreement will cover the supply of diesel with renewable content for Vale’s fleet of trucks and locomotives with a potential for the partnership to expand into other low-carbon fuels, including marine fuel with 24% renewable content and natural gas.

Petrobras has the capability to provide marine fuel with up to 24% renewable content and diesel with 5% renewable content, as mentioned by CEO Chambriard.

Former finance head Gustavo Pimenta took over as chief executive earlier this month, replacing Eduardo Bartolomeo. Analysts have highlighted that improving ties with the government would be a key goal for the new CEO.

“We are very happy to announce this broad partnership with Petrobras, which brings benefits to both companies and creates value for Brazil,” Pimenta said in a statement.