Rio de Janeiro, Brazil, 7 May – Brazilian and Portuguese oil companies Petrobras and Galp Energia plan to produce biofuel in the Brazilian state of Pará, after signing a contract with the state government Thursday.
The two companies will now set up a partnership via which they propose to invest US$530 million. The signing of the contract is part of the National Palm Oil programme launched Thursday in the Pará city of Tomé-Açu, which outlines production of around 300,000 tons of palm oil per year, the raw material for production of biofuel.
The project outlines construction of a biodiesel factory in the state of Pará with operations due to begin in July, 2013.
On Monday Petrobras announced it would invest US$240 million in biodiesel production in Portugal in partnership with Galp Energia to supply the Iberian Peninsula. (macauhub)