Mozambican/Portuguese Biofuel Venture

Portugal’s Galp Energia and Visabeira out of Mozambique entered into a cooperation agreement on biofuels in late March. Under the cooperation agreement the two companies would develop an agro-industrial project. 

The project is aimed at building a production and distribution system of biofuels in Mozambique for export to Portugal where it will be processed at Galp Energia’s biodiesel units. The project will also produce biodiesel in Mozambique for domestic consumption.  

A search will begin to find acreage suitable for the development ‒ the partners estimate that 150,000 hectares will be required. A company will also be formed to handle the development of agricultural and associated activities, including the transformation of oilseeds in vegetable oils that constitute raw materials or other semi finished products to be used in other industries.