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Lisbon-based Galp Energia has entered into an agreement with the Portuguese Engineering, Technology and Innovation Institute in order to research and produce biofuel from algae.
The company has said the project should give Galp a "front-running" position in the commercial exploitation of a new source of renewable energy.
Galp recently unveiled plans to invest more than 1 billion euros (US$1.6 billion) in the development of second generation biofuels and another 2.8 billion euros (US$4.4 billion) to modernise its refinerise at Sines and Porto.
Nature gave us oil from algae; perhaps we should try Nature's way again
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