Galp Energia and Petrobras – Petróleo Brasileiro, S.A. have signed a memorandum of understanding for the set-up of a joint venture between the two companies for the evaluation and implementation of future business opportunities in biofuels.
The memorandum provides for technical, economic and financial feasibility studies to be performed for the production, marketing and distribution of vegetable oils and / or biofuels. Production start is scheduled for 2010 and the negotiations should be concluded by next July.
According to the memorandum, there will be an exchange of experiences and studies for determining the logistics and location of the production plant in Brazilian territory. The purpose is to export vegetable oil and / or biodiesel to Portugal, where they will be stored, marketed and distributed.