Galp Finalizes Investment in Green Hydrogen and Biofuels Projects at Sines Refinery

Investment Decision

Galp has decided to invest in two major projects aimed at reducing the carbon footprint of its Sines refinery. These projects include a 270 ktpa advanced biofuels unit and a 100 MW electrolysis plant for green hydrogen production, both expected to start operations in 2025. The total investment for these projects is approximately €650 million.

Advanced Biofuels Unit

In partnership with Mitsui, Galp will establish a 75/25 joint venture to produce and market advanced biofuels. The 270 ktpa unit will be located adjacent to the Sines refinery and will use waste residues to produce renewable diesel (HVO) and sustainable aviation fuel (SAF). This initiative is expected to avoid around 800 ktpa of greenhouse gas emissions (Scope 3, CO2e) compared to fossil fuel alternatives. The plant will utilize Axens’ technology, with Technip Energies and Technoedif Engenharia serving as the main EPCM providers. The estimated investment for this plant is around €400 million.

Green Hydrogen Unit

Galp will also invest in a 100 MW electrolysis plant to produce up to 15 ktpa of renewable hydrogen. This project aims to replace approximately 20% of the existing grey hydrogen consumption at the Sines refinery, potentially reducing greenhouse gas emissions by around 110 ktpa (Scope 1 & 2, CO2e). The electrolysers will be powered by renewable energy sourced from long-term supply agreements and Galp’s renewable power assets. The plant will use industrial recycled water, consuming less than 3% of the refinery’s average annual water needs. Plug Power will supply the 100 MW PEM electrolysers, with Technip Energies as the main EPCM provider. The estimated investment for this project is around €250 million.