Petrobras to invest in biodiesel production in partnership with Portugal’s Galp Energia

4 May 2010

Rio de Janeiro, Brazil, 4 May – Petrobras plans to invest in producing biodiesel in Portugal in partnership with Galp Energia, the Brazilian state oil company indicated on Monday in Rio de Janeiro.

After announcing the signing of an agreement with the Portuguese government to seek hydrocarbons in deep water in the Alentejo basin, Petrobras announced on Monday that its administration had approved the establishment of companies to implement the biodiesel production project in Portugal.

Planned for 2015, around 250,000 tonnes of biodiesel will be produced each year in Portugal, for an estimated investment of US$240 million, and will target the European market “with priority for the Iberian market”, states the text of the announcement.

Petrobras indicates that the supply strategy for the biodiesel unit in Portugal envisages the installation of an agro-industrial pole in Brazil for cultivation of the ‘dendê’ palm, with production of about 300,000 tonnes of palm oil per year in Pará state and an estimated investment of US$290 million, with outlays from 2010 to 2018.

Total estimated investment for the project is around US$530 million, to be done in equal parts by the companies. (macauhub)