Brasilia, Brazil, 12 Oct – Portugal’s Galp Energia and Brazilian state company Petrobras are this year to sign the contract to begin joint production of biodiesel, the chairman of the Portuguese company said Thursday in Brasilia.

“We are finishing up the legal formatting of this partnership and building the necessary business plans on which to base it economically. By the end of this year, we will have the entire process concluded to move into the field and actually work,” Ferreira de Oliveira told Portuguese news agency Lusa.

In May, Galp and Petrobras signed a memorandum of understanding to set up a joint venture for the biofuels business, able to produce 600,000 tons of biodiesel per year.

Half of that production is expected to supply Portugal in order to meet the government target of incorporating 10 percent biofuel in road fuels by 2010.

Ferreira de Oliveira was speaking to Lusa on the sidelines of II Enerbio, an event held between October 9 and 11 in Brasilia, which includes an international conference on biofuel. (macauhub)