Galp to invest in advanced biofuels, hydrogen at Sines refinery

Portuguese oil-and-gas major Galp Energia SGPS SA (ELI:GALP) has taken final investment decisions on two large clean energy projects at its Sines refinery to produce advanced biofuels and hydrogen.

The projects represent a combined investment of around EUR 650 million (USD 691m), the Lisbon-based company said today.

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In partnership with Japanese trading and investment company Mitsui & Co (TYO:8031), Galp will invest in a unit adjacent to the Sines refinery that will produce renewable diesel and sustainable aviation fuel (SAF) from waste residues. Via a 75/25 joint venture, Galp and Mitsui will spend some EUR 400 million on the plant, which will have an annual capacity of 270 kilotonnes. A consortium of Technip Energies and Technoedif Engenharia will be the main engineering, procurement and construction management (EPCM) provider for the facility, which will use Axens’ technology.

The second project will see Galp invest in the construction of a 100-MW electrolysis plant, which will generate renewable hydrogen to replace some 20% of the existing grey hydrogen consumption at the refinery.

The electrolysers will be powered by renewable electricity, sourced via long-term supply agreements, also making use of Galp’s renewables assets, the company said. It has ordered proton exchange membrane (PEM) electrolysers from Plug Power, while Technip Energies will be the main EPCM contractor.

Both projects are expected to come onstream in 2025.

“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,” said Galp chairwoman Paula Amorim.

(EUR 1 = USD 1.064)