Galp Energia has signed an agreement that aims the production of vegetable oils and biofuels in Mozambique. The agreement signed with Companhia do Búzi envisages the development of agricultural and associated activities, including the transformation of oilseeds in vegetable oils, mainly to export to Portugal where they will be processed at Galp Energia’s refineries and transformed in second generation biodiesel for incorporation in transportation fuels.
To carry out these activities a company denominated Galpbuzi will be created to promote in Mozambique the development of agricultural projects oil seeds production and its transformation in vegetable oils. The company will also be responsible for the export to Portugal of part of the vegetable oils produced and the commercialization of vegetable oils / biodiesel, which are not targeted for the Portuguese market, for domestic consumption in the agro industrial sector and surrounding populations. This project covers a total controlled production area of 25,000 hectares and promotes up to 25,000 hectares in agricultural extension regime. In plateau, the production of vegetable oil for non-food usage will reach approximately 65 thousand tonnes per year.
This agricultural project will be oriented by sustainability principles, with total regard for the region’s particularities, contributing for the preservation of traditional agricultural systems, not interfering with the food chain and creating a large number of jobs.
With this agreement Galp Energia takes an important step forward in its strategy for biofuels and contributes to positioning Portugal at the forefront of second generation biofuel production.