Galp and Mitsui team up for biofuel plant project
The companies will create a joint venture for the project, which will be 75% controlled by Galp, it said in a statement reported by Reuters.
Galp also said it had made a final decision to invest €250 million on its own in a 100 mega-watt (MW) electrolyser unit to produce green hydrogen to power the refinery.
It said that both plants would start operating in 2025.
The hydrogenated vegetable oil (HVO) plant will have a production capacity of 270,000 metric tons per year.
It will transform waste materials, such as used cooking oils, into renewable biodiesel and sustainable aviation fuel (SAF).
The Sines refinery south of Lisbon is Portugal’s biggest consumer of hydrogen from natural gas, although Galp wants to gradually produce zero-carbon fuel there through a process of electrolysis using renewable energy.
Galp chairwoman Paula Amorim said: “These decisions are based on the expectation that the tax and regulatory.”
Galp is trying to speed up the decarbonisation of its processes and products and plans to allocate around 50% of its capital expenditure to low-carbon activities through 2025.