The biofuels agreement follows the memorandum of understanding that the two companies signed in Lisbon, Portugal in May 2007. The project will be driven by a company in which Galp Energia and Petroleo Brasileiro will each have a 50% stake.
The jointly-owned company will produce 300,000 tonnes of vegetable oils for the production of second-generation biodiesel at Galp Energia refineries. Meanwhile, the remaining production of vegetable oils, 300,000 tonnes, will be allocated to biodiesel production for export to Portugal and other European countries.
Galp Energia said that the agreement is an important part of the implementation of the company’s biofuels strategy, as well as a significant contribution to giving Portugal a leadership position in the production of second-generation biofuels.
The business plan, which the companies said will be further elaborated upon, is subject to ratification by the boards of both firms.
