Galp Approves Two Major Investments at Sines Site
In the first project, Galp and Mitsui are collaborating to produce and market advanced biofuels by establishing a 75/25 joint venture (JV) and investing in a large-scale plant with a capacity of 270 kt/year next to the refinery in Sines, Portugal.
The unit will use waste residues to produce renewable diesel (hydrotreated vegetable oil – HVO) and sustainable aviation fuel (SAF), allowing to avoid c.800 kt/y of greenhouse gas emissions (Scope 3, CO2e), when compared to its fossil fuels alternatives.
The plant will use Axens’ technology and the consortium Technip Energies/Technoedif Engenharia has been selected as the main engineering, procurement and construction management (EPCM) provider.
According to Galp, the total investments in the new plant are estimated at roughly €400 million.
Galp will also build a 100 MW electrolysis plant that will produce up to 15 kt/year of renewable hydrogen. This will allow the company to replace about 20% of the current consumption of gray hydrogen in the Sines refinery, which can lead to a reduction of greenhouse gas emissions of about 110 kt/year (Scope 1 &2, CO2e).
The electrolyzers, Galp said, will be powered by electricity generated from renewable sources under long-term supply contracts that also use the company's renewable energy assets. The unit will use industrial recycled water, with expected annual consumption representing less than 3% of the average annual needs of the refinery.
Galp estimates the total investments for this green hydrogen project at around €250 million.
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“These projects are some of the largest of their kind, representing an overall investment of around €650 million. 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,” said Paula Amorim, Galp’s chairwoman.
