Petrobras, Galp Energia, and EDP Energias do Brasil have announced that they will sign memoranda of understanding for co-operation in the biofuel, natural gas, electricity generation, and hydrocarbon exploration and production areas.

According to Petrobras, the biofuel project that is under consideration is divided into two phases, each of which calls for the annual production of 300,000 tons of vegetable oil in Brazil and 250,000 tons of second generation biodiesel, half in Portugal and the other half at a location yet to be determined. The company’s joint stock will be accounted for by Petrobras and Galp Energia in equal measure.

In the gas and energy area, the agreement to be signed between Petrobras and EDP Energias do Brasil envisions the creation of partnerships to undertake studies to develop projects to generate energy using hydroelectric and eolian plants, in addition to thermoelectric plants fueled by natural gas and biomass, such as sugarcane bagasse, said the company.

The memorandum of understanding will be in effect for two years. The agreement calls for the implementation of the projects approved by the two companies in their technical, commercial, and financial aspects.

Petrobras and Galp Energia have announced that they will also sign a memorandum of understanding to assess the possibility to establish and maintain partnerships with Petrobras to allow Galp to perform as an operator in blocks located in shallow Campos, Santos, and Espirito Santo basin waters.