Galp/Petrobras bio-fuel joint venture requires 350 million-euro investment

5 July 2007

Lisbon, Portugal, 5 July – The joint venture between Portugal’s Galp Energia and Brazil’s Petrobras for the production and distribution of bio-fuel will require an investment of some 350 million euros, the Portuguese company’s chairman said Wednesday in Lisbon.

The agreement, signed Wednesday in Lisbon, outlines that the two companies will each have a 50 percent share of the new company, which will carry out the investments.

Of the total investment outlined, Manuel Ferreira de Oliveira said that 250 million euros were to be used to adapt Galp’s refineries to process bio-fuel.

As well as producing second generation biodiesel in Galp’s refineries from vegetable oils produced in Brazil, the project includes production for export in Brazil and boosting the sowing of oil-producing crops.

Between 100 and 120 million euros are to be invested in the industrial project in Brazil, Ferreira de Oliveira said.

Altogether some 600,000 tons of vegetable oil will be produced each year by the new company.

Half of this will be processed in Galp’s refineries and the other half will be refined locally and subsequently exported to Portugal and/or other European countries. (macauhub)