Petrobras and Galp Energia Form Biofuels Joint Venture to Produce 600,000 Tons of Vegetable Oils per Year By 2010

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Researched by Industrial Info Resources (Sugar Land, Texas). Brazilian state-run oil firm Petrobras and Portugal’s largest energy company, Galp Energia recently signed an agreement for a biofuels joint venture. The deal aims to produce 600,000 tons of vegetable oils per year in Brazil, along with biodiesel marketing and distribution in the Portuguese and European markets. The agreement of the partnership was signed on Wednesday, July 4, in the sidelines of the Brazil-European Union Summit held in Lisbon.

It was announced that both companies should have 50% in the new partnership in order to promote the investments. According to Manuel Ferreira de Oliveira, the President of the Portuguese company, the undertaking requires an investment of approximately $480 million and should be running by 2010.

Of the total volume of funds to be put into the project, approximately $430 million will be devoted to the adaptation of Galp refineries for the processing of biofuels.

The project consists of a 50% of joint stock to produce 300,000 tons of vegetable oils to produce second generation biodiesel at Galp Energia refineries, and 300,000 tons of vegetable oil to produce biodiesel destined for export to Portugal and other European countries.

The deal will help Portugal meet its goal of using biofuel for 10 percent of total transportation fuels by 2010.

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