Says It May Yield 6,500 Barrels Of Diesel Per Day

A Portuguese oil company, Galp Energia, says it will build a plant to make diesel fuel from vegetable oils. Output will be 6,500 barrels a day, using a refining process much like that used for petroleum.

The method was developed by Honeywell subsidiary UOP, and Eni, the Italian energy company. In short, hydrogen is added to the oils, which are derived from food crops. The company says the result is a blend superior to ordinary diesel fuel.

Eventually, Galp hopes to make the oil from algae or from jatropha, a hardy Central American shrub. UOP says diesel engines using the new fuel will cut CO2 emissions by up to 70 percent, and that the plant-derived fuel is superior to the biodiesel already being made in the US.

The New York Times reports UOP is researching using the process to make jet fuel from the same feedstock. It's thought European airlines -- many of which are now operating under a controversial "carbon trading" scheme, to theoretically offset their impact on the environment -- would jump at the chance to use a more environmentally-friendly fuel.

Galp says the cost for the fuel currently exceeds petroleum-based diesel, but volume production could make it competitive.

FMI: www.galpenergia.com