Portugal, Brazil seek Brazilian investors for sustainable fuel plants in Europe
Portugal and Brazil are seeking to attract Brazilian investors to build one or two advanced biofuel and sustainable aviation fuel plants in Portugal, the country's energy minister said on Thursday.
Maria da Graca Carvalho said she would discuss the project — which targets both the domestic and European markets — when meeting her Brazilian counterpart in Brasilia next week.
According to Carvalho, it aims to leverage Brazil's expertise in biofuels and Portugal's position as a gateway to Europe to meet rising demand for low-carbon fuels.
Brazil has 'significant' expertise, minister says. Carvalho said the project had the backing of Brazilian President Luiz Inacio Lula da Silva. She added that Brazil — which she described as a "very close" partner — was Portugal's largest oil supplier, accounting for 44% of imports.
"Brazil has been a leader for many years and has significant technological expertise in advanced biofuels and SAF, and we want to offer the conditions in Portugal to set up one or two plants to produce these fuels," Carvalho told reporters.
"We're looking at a kind of joint venture through which we could produce not only for the Portuguese market, but also for the European market," she said.
Foreign investment agency would handle any deal. She said she would visit plants in Brazil next week. Any potential investment in similar facilities in Portugal would be handled through AICEP, the country's foreign investment agency, she added.
Portugal's advanced biofuels industry is still in its infancy, with Galp constructing a 270,000-ton-per-year renewable fuels plant in Sines that is scheduled to begin producing SAF and renewable diesel in 2026.
Carvalho said Algeria was Portugal's second-largest oil supplier after Brazil, while Nigeria and the U.S. were the two main natural gas suppliers, meaning the country did not depend on the Gulf region, although it remains exposed to global energy price swings.
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