Portugal – Energy giant Galp has taken a step towards a sustainable and low-carbon future with its recent announcement of a €650 million (approximately $692 million) investment aimed at reducing the carbon footprint of the Sines refinery and its product portfolio, ushering in a new era of eco-friendly energy solutions in Portugal.
At the core of Galp’s transformative vision are two projects: a 270 thousand tons per annum (ktpa) advanced biofuels unit, developed in partnership with Mitsui, and a 100-megawatt (MW) electrolysis plant dedicated to the production of green hydrogen. Both initiatives are projected to start operations in 2025.
Advanced biofuels unit
Galp and Mitsui have joined forces to establish a 75/25 joint venture and invest in a substantial 270 ktpa advanced biofuels unit located adjacent to the Sines refinery. This unit represents a pioneering effort in the production and marketing of advanced biofuels, utilizing waste residues to craft renewable diesel (hydrotreated vegetable oil – HVO) and sustainable aviation fuel (SAF).
The environmental impact of this initiative is striking. It is expected to prevent around 800 ktpa of greenhouse gas emissions (Scope 3, CO2e) when compared to conventional fossil fuel alternatives. The synergy between Galp’s operational expertise and Mitsui’s global reach is poised to ensure the efficient procurement of plant feedstock.
The technology behind this eco-friendly endeavor will be provided by Axens, with the consortium of Technip Energies and Technoedif Engenharia serving as the main Engineering, Procurement, and Construction Management (EPCM) provider. The estimated investment in this pioneering plant is around €400 million, and Galp will be the primary operator, consolidating 75% of all businesses related to the joint venture.
Green hydrogen unit
Galp’s commitment to a sustainable future extends beyond advanced biofuels. The company is set to construct a 100 MW electrolysis plant, designed to produce up to 15 ktpa of renewable hydrogen. This large-scale initiative aims to replace approximately 20% of the Sines refinery’s existing grey hydrogen consumption and could lead to a reduction of about 110 ktpa of greenhouse gas emissions (Scope 1 & 2, CO2e).
This green hydrogen production will be powered by renewable energy sources secured through long-term supply agreements, capitalizing on Galp’s renewable power assets. Additionally, industrial recycled water will be used in the process, with consumption representing less than 3% of the refinery’s average annual needs.
The prestigious Plug Power has been entrusted with supplying the 100 MW proton exchange membrane (PEM) electrolysers, while Technip Energies assumes the role of the primary EPCM provider. The total investments for this groundbreaking green hydrogen project are estimated at approximately €250 million.
