Petrobras invests in biodiesel production in Pará

Rio de Janeiro, May 5, 2010 – Petróleo Brasileiro S.A. - Petrobras announces a new project to produce biodiesel from palm oil (dendê) by building a self-owned biodiesel plant in the state of Para expected to start up in July 2013. On May 3^rd, Petrobras announced another biodiesel project in partnership with Galp Energia.

The sustainable palm biodiesel production project in Pará foresees the deployment of a biodiesel plant with capacity to produce 120 million liters of biodiesel per year to supply Northern Brazil. With investments estimated at R$330 million, of which approximately R$240 million in agriculture and about R$90 million in the industrial plant, the project also includes palm oil extraction industrial complexes, including crushers and a power cogeneration unit.

In 2010, 1.1 million palm seeds will be acquired to start producing seedlings in nurseries. Seedling planting in the production areas is planned for December 2011, and harvest is expected to start as of 2014.

The biodiesel plant supply strategy foresees planting palm in eroded areas, working in one of the regions most affected by deforestation in the State of Pará. As a result, the projects will afford environmental benefits with the recovery of these areas, providing protection to the soil, ecological balance and the economic reintegration of these regions, in addition to contributing to the reduction of greenhouse gases in the vegetable oil production cycle and in biodiesel production.

www.petrobras.com.br/ri/english
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