Galp Energia and Petrobras – Petróleo Brasileiro, S.A. have signed an agreement for the annual production of 600,000 tonnes of vegetable oils in Brazil as well as the production, marketing and distribution of biodiesel in the Portuguese and European markets. The agreement follows the memorandum of understanding signed last May in Lisbon by the two companies.
The project will be driven by a company in which each of the parties will hold 50% of the shares. The jointly owned company will produce:
• 300,000 tonnes of vegetable oils for the production of second-generation biodiesel at Galp Energia refineries;
• The remaining production of vegetable oils, 300,000 tonnes, will be allocated to biodiesel production for export to Portugal and other European countries.
The business plan, which will be further elaborated, is subject to ratification by the boards of both companies.
By this agreement, Galp Energia takes a decisive step in the implementation of its biofuel strategy, thereby contributing to give Portugal a leadership position in the production of second-generation biofuels.