Galp made the final investment decision that will allow the start of two large-scale projects, crucial to the decarbonization of the Sines refinery and its energy products. These projects include an advanced biofuels unit with a production capacity of 270,000 tpy, in partnership with Mitsui, and the installation of 100 MW of electrolyzers for the production of green H₂. It is expected that the two new units will begin operating by the end of 2025.

“These projects, two of the largest of this nature, represent a global investment of €650 MM. This is a significant contribution to the transformation and growth of the industrial sector in Portugal, placing Galp at the forefront of developing low-carbon solutions essential to ensuring the energy transition. These investment decisions were taken with the expectation that the evolution of the tax and regulatory framework in Portugal will not jeopardize the success of these large-scale projects, ensuring that our industrial operations remain competitive in the long term in a global context,” said Paula Amorim, Chairman.

Galp and Mitsui joined forces in a joint venture (75/25) to produce and sell advanced biofuels in a unit adjacent to the Sines refinery, with a capacity of 270,000 tpy. The unit will produce renewable diesel hydrotreated vegetable oil (HVO) and sustainable aviation fuel sustainable aviation fuel (SAF) from used waste, allowing a reduction in greenhouse gas emissions by around 800,000 tpy (Scope 3, CO₂e), compared to available fossil alternatives.

This partnership brings together the extensive industrial experience of the two companies, combining Galp's operational and market synergies with Mitsui's global presence, also supporting the supply of the raw materials needed for the unit. The factory will use Axens technology and the Technip Energies/Technoedif Engenharia consortium was selected as the main provider of engineering, procurement and construction management (EPCM) services.

The total investment in this industrial unit is estimated at around €400 MM. Galp will be the operator of this industrial unit and it is planned to proportionally consolidate (75%) all businesses related to the joint venture.

Galp will invest in the construction of a green H₂ unit with a capacity of 100 MW of electrolysis that will produce up to 15,000 tpy of renewable H₂. The integration of this large-scale project into the operations of the Sines refinery will allow the replacement of around 20% of current gray H₂ consumption and could represent a reduction in greenhouse gas emissions of approximately 110,000 tpy (Scope 1 and 2, CO₂e).

The electrolyzers will be powered by renewable electricity, through long-term supply agreements, also leveraged by Galp's renewable generation capacity. Using recycled industrial water, it is estimated that the water consumption of this unit represents less than 3% of the refinery's average annual consumption. The construction of the proton exchange membrane electrolyzer has been assigned to Plug Power while Technip Energies will be the main supplier of EPCM services. The total investment in this green H₂ project is estimated at around €250 MM.