Petrobras and Galp Energia sign biofuels agreement

Brazil's state-owned oil company Petrobras and Galp Energia SGPS have signed an investment agreement to create a joint-venture to develop a biofuel production and marketing project.

The agreement is the outcome of a Memorandum of Understanding the companies signed last May, which was aimed at studying the feasibility of joint biodiesel production, marketing and distribution projects in the Brazilian, Portuguese and international markets.

The agreement, the Belem Project, foresees the production of 600,000 tonnes of vegetable oil a year in Brazil, which will be used to produce 500,000 tonnes of second generation biodiesel a year. Half of this volume will be produced in Portugal, while the other half will be produced at a location yet to be defined. The product will be marketed in Europe, mainly in the Iberian market.

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