Portuguese oil company Galp has announced a strategic partnership with Japan's Mitsui to invest €400 million ($426 million) in a large-scale industrial plant dedicated to producing biodiesel and biojet fuel from waste materials at its Sines refinery. This ambitious endeavor is set to transform waste, including used cooking oils, into sustainable aviation fuel (SAF) and renewable biodiesel, contributing to environmental sustainability and waste reduction.
The joint venture, which will oversee this project, will be majority-owned by Galp, holding a 75% stake, as disclosed in a statement released by the company. Galp also revealed its independent decision to invest €250 million in a 100-megawatt (MW) electrolyser unit at the same refinery, aimed at generating green hydrogen to power its operations. Both of these groundbreaking facilities are anticipated to commence operations in 2025.
The Hydrogenated Vegetable Oil (HVO) plant will boast an impressive annual production capacity of 270,000 metric tons, signifying a significant step towards greener energy alternatives. This facility will utilize green hydrogen produced by the electrolyser, which will have an annual capacity of 15,000 metric tons of green hydrogen.
Sustainable aviation fuels (SAFs) have emerged as an eco-conscious alternative to conventional jet fuels, promoting environmental sustainability by replacing polluting petroleum-based products while repurposing waste materials. This development aligns with Galp's vision of transforming its Sines refinery, situated south of Lisbon, into a hub for zero-carbon fuel production through electrolysis, powered by renewable energy sources.
Paula Amorim, Chairwoman of Galp, emphasized the magnitude of these initiatives, labeling them as among the largest of their kind. She stated that these investments were grounded in the expectation that Portugal's tax and regulatory framework would support the success of these extensive undertakings.
Galp is committed to expediting the decarbonization of its processes and products, with plans to allocate approximately 50% of its capital expenditure towards low-carbon initiatives through 2025, reinforcing its commitment to sustainability and environmental responsibility.
