Brazilian energy company Petrobras has said that its board of directors have approved a plan to deploy a project for the production of biodiesel (green-diesel) in Portugal, in partnership with Galp Energia. Total investments estimated for the project is approximately $530m, to be made by the partners in equal amounts.

Through this project, Petrobras expects to increase its position as biodiesel supplier with strategic presence at the European market.

With total investments estimated at $240m, some 250,000 tons of biodiesel are expected to be produced in Portugal per year. Production expected to start up in 2015 and will be aimed to supply the European market, with priority to the Iberian market.

According to Petrobras, the strategy for the supply of raw material for the biodiesel plant in Portugal foresees the deployment of an agro-industrial pole in Brazil to cultivate palm (dende), with a production of about 300,000 tons of palm oil per year in the state of Para and with investments estimated at $290m, to be disbursed between 2010 and 2018.