The European Investment Bank (EIB) has approved a loan of €430 million for Galp’s Sines Refinery projects. The funding aims to support the decarbonization of heavy-duty road transport and aviation.
Galp is developing a Biofuels unit in collaboration with Japan’s Mitsui. The project involves a total investment of €400 million, with €250 million sourced from the EIB.
The Biofuels unit will convert vegetable oils and residual fats into sustainable aviation fuel (SAF) and renewable diesel. The unit is projected to begin production in 2026.
It will have the capacity to produce up to 270,000 tons of renewable fuels annually. This output will help Portugal meet the European Union’s aviation fuel mandates.
SAF is critical for reducing greenhouse gas emissions in air transport, which accounts for approximately 3% of global emissions.
Galp is also constructing a 100MW electrolyser at the same location. This project involves a €250 million investment, with €180 million financed by the EIB.
The electrolyser is expected to produce up to 15,000 tons of green hydrogen each year. It aims to become one of the first operational units of its size in Europe.
Jean-Christophe Laloux, EIB Director General, commented on the importance of financing and innovation for sustainable energy transition. He highlighted the role of advanced biofuels and green hydrogen in promoting energy independence in Europe.
Ronald Doesburg, a member of Galp’s Executive Board, emphasized the need for collaboration among energy companies and governments. He stated that more support is necessary to maintain Portugal’s relevance in a changing global landscape.
The projects align with the European Green Deal’s goal of climate neutrality by 2050. They also contribute to the EU’s energy independence as outlined in the REPowerEU plan.
Both projects benefit from €22.5 million in Recovery and Resilience Plan incentives.
