EIB Funds Galp's Hydrogen and Biofuels Projects in Sines with €430M
- EIB provides €250M for a €400M biofuels unit converting oils and fats into SAF and HVO, operational by 2026.
- A 100MW electrolyser, costing €250M with €180M from EIB, will produce 15,000 tons of hydrogen annually from next year.
- Projects align with EU climate neutrality by 2050 and benefit from €22.5M in Recovery and Resilience Plan incentives.
Investment Overview
The European Investment Bank (EIB) has approved a €430 million loan to support two major projects at Galp’s Sines Refinery. These initiatives aim to decarbonize heavy-duty road transport and aviation, contributing to the EU's climate goals.
Biofuels Unit
Galp, in partnership with Japan’s Mitsui, is developing a biofuels unit with a total investment of €400 million, of which €250 million is financed by the EIB. This facility will convert vegetable oils and residual fats into sustainable aviation fuel (SAF) and renewable diesel (HVO). The unit is expected to start production in 2026, with a capacity of 270,000 tons of renewable fuels annually, helping Portugal meet EU aviation fuel mandates.
Hydrogen Production
In parallel, Galp is constructing a 100MW electrolyser at the same site, a €250 million project with €180 million funded by the EIB. Scheduled to become operational next year, it will produce up to 15,000 tons of renewable hydrogen annually, marking one of the first large-scale units in Europe.
Strategic Alignment
These projects support the EU's climate neutrality target by 2050 and enhance energy independence as outlined in the REPowerEU plan. They also receive €22.5 million in incentives from the Recovery and Resilience Plan.