Brazil: Petrobras’ biofuel project in partnership with Portugal’s Galp Energia to go ahead

5 March 2009

Brasilia, Brazil, 5 March – The chairman of Petrobras Biocombustível, Alan Kardec, said Wednesday in Brasilia that studies on the development of a project together with Portugal’s Galp Energia would go ahead, despite the current financial crisis.

“Talks with Galp continue and are expected to be concluded within two months. It is very important because it can make it easier for our product to enter the European market,” he said.

The project includes annual production of 330 million litres of vegetable oil in Brazil and 320 million litres of biodiesel in Portugal and is included in the company’s business plan for 2009-2013.

Kardec was speaking during the presentation of the Business Plan of Petrobras Biocumbutível, which also includes setting up a biodiesel plant in Africa, with a capacity to produce 115 million litres per year.

The international plans of the Brazilian state company also include partnerships, this year, for four new ethanol production projects, involving an outside partner, which will ensure a market for the product, and a national producer.

Petrobras Biocombustível also said it would invest US$2.4 billion in the biodiesel and ethanol production segment for the 2009-2013 period, 91 percent of which would be invested in Brazil. Of the total amount, 80 percent will be invested in ethanol and 20 percent in biodiesel.

The Business Plan projects production of 3.9 billion litres of ethanol in 2013, of which 1.9 billion will be for export. (macauhub)