The European Investment Bank (EIB) has signed a €430 million loan to support Galp’s initiative towards the decarbonisation of two major projects at its Sines Refinery. The two projects aim to significantly decarbonize heavy-duty road transport and aviation.
Biofuels Unit to Revolutionize Aviation Fuel Production
Galp is building a Biofuels unit in collaboration with Japan’s Mitsui. The €400 million investment will convert vegetable oils and residual fats into sustainable aviation fuel (SAF) and renewable diesel (HVO). Both will be the same quality as their fossil-based equivalents for application in conventional combustion engines.
The plant, which will begin production in 2026, will produce up to 270,000 tons of renewable fuels annually. This will allow Portugal to meet the European Union‘s aviation fuel demand. SAF is at the centre of air transport decarbonisation, contributing approximately 3% of global greenhouse gas emissions.
Green Hydrogen Production with €250 Million Electrolyser
Galp is building a 100 MW electrolyser at Sines with a €250 million investment, €180 million of which the EIB will cover. The electrolyser will yield up to 15,000 tons of green hydrogen per year when it foes online in 2026. It will become one of Europe’s biggest functional green hydrogen units, continuing to promote the EU’s green energy drive.
Ronald Doesburg, Galp’s Executive Board Member responsible for the Industrial area said, “We have mobilized partners, private investment, and European financing to drive a transformative project that brings European and national energy and industrial policies to life.”
He added, “More is needed from energy companies, public funding and government support if we want to maintain Portugal’s relevance in an increasingly unstable world.”
Also read: EIB and Sparkasse Bank Partner to Strengthen Green Finance in North Macedonia
Facilitating the European Green Deal and REPowerEU Plan
Additionally, the green hydrogen and biofuels projects promote the EU’s climate neutrality vision for 2050 and enhance energy autonomy in REPowerEU. The €22.5 million funding from the Recovery and Resilience Plan also supports the projects, highlighting the EU’s push for clean energy transitions.