The European Investment Bank (EIB) has granted a €430 million loan for the construction of two key projects aimed at transforming Galp’s Sines Refinery, making a crucial contribution to the decarbonisation of heavy road transport and aviation.

Galp is developing the biofuels unit—already in the construction phase—in partnership with the Japanese firm Mitsui, as part of a total investment of €400 million, of which €250 million is provided by the EIB. This unit will convert vegetable oils and residual fats into sustainable aviation fuel (SAF) and renewable diesel of biological origin (HVO), with characteristics identical to conventional fossil fuels used in standard combustion engines.

Set to commence production in 2026, the unit will have the capacity to produce up to 270,000 tonnes of renewable fuels, sufficient for Portugal to meet the European Union mandate on such fuels in aviation. SAF is pivotal for the aviation sector—responsible for nearly 3% of global greenhouse gas emissions—to embark on its journey towards decarbonisation.

In parallel, Galp is constructing a 100 MW electrolyser at the same site, with an investment of €250 million, of which the EIB will finance €180 million. It is anticipated that this electrolyser will produce up to 15,000 tonnes of renewable hydrogen per year from next year, making it one of the first operational units of its size in Europe.

“These pioneering projects are a clear example of how we can combine funding, innovation and our environmental commitment to promote a just and sustainable energy transition,” said Jean-Christophe Laloux, General Director, Head of Lending and EU Advisory at the EIB. “By supporting the production of advanced biofuels and green hydrogen, we are contributing to a more energy-independent Europe, aligned with global climate objectives.”

“We have mobilised partners, private investment and European funding to drive a transformative project that brings to life European and national energy and industrial policies,” said Ronald Doesburg, a member of Galp’s Executive Board responsible for the Industrial area. “It takes more than just energy companies; public finance and government support are essential if we are to maintain Portugal’s relevance in an increasingly unstable world,” he concluded.

The two projects support the aim of achieving climate neutrality by 2050, in line with the European Green Deal, and reinforce the EU’s energy independence, as outlined in the  REPowerEU plan. Additionally, the projects benefit from €22.5 million in incentives from the Recovery and Resilience Plan.