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Petrobras and Galp Energia Sign Biofuel Agreement
BRAZIL - Petrobras and Galp Energia SGPS signed an Investment Agreement in Lisbon, to create a joint-venture to develop a biofuel production and marketing project..The agreement is the outcome of the breakdown of the Memorandum of Understanding the companies signed on 18 May, which was aimed at studying the feasibility of joint biodiesel production, marketing, and distribution projects in the Brazilian, Portuguese, and international markets.
The document was signed during a visit of president Luiz Inácio Lula da Silva to Portugal, in a ceremony held at Torre de Belém in the presence of Portugal Prime Minister José Sócrates.
Symbolically dubbed the Belém Project, the agreement foresees the production of 600,000 tonnes of vegetable oil per year in Brazil, which will be used to produce 500,000 tonnes of 2nd Generation biodiesel (2G Biodiesel) per year.
Half of this volume will be produced in Portugal, while the other half at a location yet to be defined.
The product will be marketed in Europe, mainly in the Iberian market.
The studies and analyses carried out jointly by Petrobras and Galp, after the above-mentioned memorandum was signed, indicated the deal is feasible, leading to a Business Plan for the development of the Belém Project.
The Investment Agreement aims at setting the standards for the relationship between the parts for project development.
The companies intend to deepen the studies to confirm the premises used in the Business Plan and materialise the partnership to deploy the foreseen operations and activities.
It also determines that, if project feasibility is confirmed, a company be incorporated with joint stock shared between Petrobras (50 per cent) and Galp Energia (50 per cent), or their affiliates.
TheBioenergySite News Desk
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