Petrobras to Produce Biodiesel from Palm Oil in Portugal

Petrobras, a Brazilian oil company, is escalating its studies for constructing facilities for production of biodiesel from palm oil.

This was mentioned by Ricardo Castello Branco, the company’s Director. According to him, the factory would be established in one of the Galp Energia refineries in Portugal and the project details are to be evaluated. He further mentioned that the project would be constructed and be ready for operation by the time the palm oil that has already been planted would be available.

Two projects have been planned for biodiesel production from palm oil and they are one factory in northern Brazil’s state of Parana with a June 2013 deadline for operations to commence and the Belem Project in Portugal in partnership with Galp Energia. An agreement was signed between the two oil companies for producing around 260,000 tons of biodiesel every year in Portugal at the Sines Refinery. Establishment of a biodiesel unit in Portugal also includes setting up of an agri-industrial hub in the Brazilian region for growing palms with an annual production of 300,000 tons per year. The two companies would be sharing the investments in the project, which is equivalent to 395 million euros wherein 216 million euros are to be invested in Brazil alone.