The board of Brazilian state-run energy giant Petroleo Brasileiro SA (PBR), or Petrobras, approved a plan to produce biodiesel in Portugal, in partnership with Galp Energia SGPS SA (GALP.LB), Petrobras said Monday in a statement.

"With total investments estimated at $240 million, some 250,000 tons of biodiesel are expected to be produced in Portugal per year. Production expected to start up in 2015 and will be aimed to supply the European market, with priority to the Iberian market," Petrobras said.

According to the company, the strategy for the supply of raw material for the biodiesel plant in Portugal foresees the deployment of an agro-industrial pole in Brazil to cultivate palm, with a production of about 300,000 tons of palm oil a year in the Brazilian state of Para and with investments estimated at $290 million, to be disbursed between 2010 and 2018.

"Total investments estimated for the project is approximately $530 million, to be made by the partners in equal amounts. Trough this project, Petrobras expects to increase its position as biodiesel supplier with strategic presence at the European market," said the company. THE END

Source: Dow Jones Newswires