Galp, the Portuguese energy company, announced on Monday that it plans to invest around €650 million ($692 million) in two major projects in Portugal. These investments aim to significantly decrease the carbon footprint of the Sines refinery and its products.
Approximately €400 million will be allocated to the establishment of an advanced biofuels unit through a joint venture between Galp and Japan's Mitsui & Co. The remaining funds will be used to develop a green hydrogen unit.
The joint venture, with Galp holding a 75% stake, will focus on the production of renewable diesel and sustainable aviation fuel. This will be achieved by utilizing waste residues to create hydrotreated vegetable oil.
Furthermore, Galp plans to invest in the construction of a 100-megawatt electrolysis plant dedicated to producing renewable hydrogen.
Galp Chair, Paula Amorim, stated that these investment decisions were based on the expectation that fiscal and regulatory developments in Portugal would support these large-scale projects. The goal is to ensure that Galp's industrial operations remain globally competitive in the long-term.
With these investments, Galp demonstrates its commitment to sustainability and the reduction of its carbon emissions, positioning itself as a leader in the energy transition.