Galp has made a significant stride by committing to the final investment decisions (FID) for two expansive initiatives aimed at mitigating the carbon impact of the Sines refinery and its product line. These initiatives encompass a cutting-edge 270ktpa advanced biofuels facility, developed in collaboration with Mitsui, as well as 100MW of electrolysis infrastructure designed for the generation of green hydrogen. Anticipated to commence operation in 2025, both facilities are poised to make substantial contributions towards reducing environmental emissions.

Galp and Mitsui are forging a formidable partnership to produce and promote advanced biofuels, focusing their efforts on a 75/25 joint venture (JV). This collaboration involves substantial investments in a large-scale 270ktpa unit situated adjacent to the Sines refinery.

This facility will harness waste residues to yield renewable diesel, also known as hydrotreated vegetable oil (HVO), and sustainable aviation fuel (SAF). By opting for these sustainable alternatives, the project is poised to avert approximately 800ktpa of greenhouse gas emissions (Scope 3, CO2e) in comparison to conventional fossil fuel options.

This partnership harmoniously melds the extensive industrial proficiency of both companies, synergising Galp’s market presence and operational prowess with Mitsui’s global reach. Moreover, Mitsui’s involvement will significantly contribute to fulfilling the plant’s feedstock requirements.

The plant’s technology will be based on Axens’ expertise, with the consortium formed by Technip Energies and Technoedif Engenharia taking the lead as the main Engineering, Procurement, and Construction Management (EPCM) provider.

The total investments earmarked for this cutting-edge facility are estimated at around €400m.

Galp is slated to take on the operational role for the plant and plans to consolidate the majority (75%) of all ventures affiliated with the JV.

Galp is embarking on an ambitious endeavour, committing to construct a 100MW electrolysis plant designed to yield up to 15ktpa of renewable hydrogen.

This expansive project holds the promise of supplanting approximately 20% of the current grey hydrogen consumption at the Sines refinery, potentially resulting in a substantial reduction of approximately 110ktpa in greenhouse gas emissions (Scope 1 & 2, CO2e).

To ensure the sustainability of this initiative, the electrolysers will be powered by renewable energy sources procured through long-term supply agreements, making use of Galp’s renewable power assets. Furthermore, the facility will operate with industrial recycled water, with annual consumption accounting for less than 3% of the refinery’s average annual water requirements.

The contract for the 100MW proton exchange membrane (PEM) electrolysers has been awarded to Plug Power, while Technip Energies assumes the pivotal role of the main Engineering, Procurement, and Construction Management (EPCM) provider.

The total investments earmarked for this green hydrogen undertaking are estimated at around €250m.

Galp chairwoman Paula Amorim said: “These projects are some of the largest of their kind, representing an overall investment of c.€650m.

“This is a significant contribution to the launch of the new industries of the future in Portugal, placing Galp at the forefront of the development of low carbon solutions necessary for the energy transition.

“The decisions are based on the expectation that the fiscal and regulatory developments in Portugal will not hinder the success of such large-scale investments.”