The Brazilian leader's visit is part of a tour of the Nordic countries and Spain to attract investment for infrastructure projects and increase his country's biofuel exports.
and the speaker of parliament.
An agreement on biofuels was to be signed with Deputy Prime Minister Maud Olofsson.
Sweden already purchases Brazilian ethanol made from sugar cane, one of the most efficient sources of biofuel. But Brasilia sees opportunities to expand its market.
In an article written by Lula and published in the Swedish financial daily Dagens Industri on Tuesday, the Brazilian leader said he wanted to offer "the Swedish government and Swedish companies a partnership to create a global market for biofuels."
"We should join forces in the fields of research and production for the next revolution -- ethanol made from cellulosa," he wrote.
Noting that trade between Sweden and Brazil reached 10 billion kronor ($1.48 billion) in 2006, he urged the country to "continue to invest in the Brazil of the future."
Lula was to take part in a seminar on biofuels on Wednesday before leaving for Denmark. He will then visit Oslo on Friday, and will arrive in Madrid on September 17th.