Galp Energia's Green Hydrogen and Biofuel Expansion in Sines Refinery
Key Ideas
  • Galp Energia SGPS SA receives three 500-ton reactors for its advanced biofuel production unit at the Sines Refinery, set to produce aviation fuel and diesel of biological origin by 2026.
  • The EUR 650 million investment includes an industrial-scale green hydrogen production facility, making it the first advanced biofuel unit integrated with hydrogen production in Europe.
  • The green hydrogen unit, costing EUR 250 million, will produce up to 15,000 tons of renewable hydrogen annually, while the advanced biofuels unit, a EUR 400 million investment, will have a 270,000 tons per year capacity.
  • Galp's partnership with Mitsui & Co. involves a 75-25 joint venture to produce and market advanced biofuels, with Technip Energies NV handling the engineering and construction contracts for the projects.
Galp Energia SGPS SA has reached a significant milestone with the delivery of three massive reactors weighing a total of 500 tons to its Sines Refinery in Portugal. These reactors are intended for Galp's new advanced biofuel production unit, which aims to manufacture aviation fuel and diesel of biological origin starting in 2026. The entire project, which includes the integration of an industrial-scale green hydrogen production facility at the Sines site, represents a total investment of EUR 650 million. This substantial investment is a crucial step in the refinery's transformation, positioning Galp at the forefront of low-carbon solutions essential for the energy transition. The green hydrogen unit, with a cost of EUR 250 million, is projected to produce up to 15,000 tons of renewable hydrogen annually. On the other hand, the advanced biofuels unit, a EUR 400 million endeavor done in partnership with Japan's Mitsui & Co., will have a nameplate production capacity of 270,000 tons per year. This collaboration involves a joint venture between the two companies, with a final investment decision made in September 2023. The biofuel production process will involve the conversion of treated vegetable oils and animal fats into biodiesel using hydrogen, pressure, and heat within the newly delivered reactors. Technip Energies NV has been awarded the contracts for engineering, procurement services, and construction management for both the green hydrogen and advanced biofuel projects. This expansion not only signifies a shift towards more sustainable energy solutions but also serves as a significant investment in the industrial sector of Portugal, fostering growth and innovation in the country's energy landscape.
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