The European Investment Bank (EIB) has granted Galp a €430 million loan for the construction of two key projects for the transformation of the Sines Refinery, essential for the decarbonization of transport, including heavy road transport and aviation.

The biofuels unit, already under construction and developed in partnership with the Japanese Mitsui, represents an investment of €400 million, of which €250 million is financed by the EIB. This unit will convert vegetable oils and residual fats into sustainable aviation fuel (SAF) and renewable hydrotreated vegetable oil (HVO), with characteristics identical to fossil-based fuels used in combustion engines.

This unit will have the capacity to produce up to 270,000 tons of renewable fuels, enough for Portugal to ensure compliance with the aviation fuel blending mandate from 2026 using national production. SAFs are essential for the decarbonization of air transport, which is responsible for around 3% of global greenhouse gas emissions.

At the same time, a 100 MW electrolyzer is being built at the same industrial site, financed with €180 million from the EIB, which will produce up to 15,000 tons of renewable hydrogen per year, making it one of the first infrastructures of its scale to operate in Europe.

“These pioneering projects are a clear example of how we can combine financing, innovation, and our commitment to the environment to promote a fair and sustainable energy transition,” said Jean-Christophe Laloux, Head of EU Lending and Advisory at the EIB. “By supporting the production of advanced biofuels and renewable hydrogen, we are contributing to a more energy-independent Europe and aligning with global climate goals.”

“We have mobilized partners, private investment, and European financing for a transformative project that brings to life European and national energy and industrial policies,” said Ronald Doesburg, Executive Director at Galp responsible for the Industrial area. “Energy companies are expected to do more, but so are public incentives and government support if we want Portugal to maintain its relevance in the increasingly unstable world we live in,” he concluded.
The two projects promote the goal of climate neutrality by 2050, in line with the European Green Deal, and enhance the EU’s energy independence outlined in the REPowerEU plan. The projects benefit from €22.5 million in support from the Recovery and Resilience Plan (RRP).

About the EIB
The European Investment Bank (EIB) is the long-term financing institution of the European Union, owned by its Member States. Based on eight key priorities, the EIB finances investments that contribute to the EU’s political objectives, strengthening climate action and the environment, digitalization and technological innovation, security and defense, cohesion, agriculture and bioeconomy, social infrastructure, high-impact investments outside the EU, and the Capital Markets Union.

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for more than 900 high-impact projects in 2024, strengthening Europe’s competitiveness and security.

All projects financed by the EIB Group comply with the Paris Agreement, as outlined in the Bank’s Climate Roadmap. Nearly 60% of the EIB Group’s annual financing supports projects that directly contribute to climate change mitigation, adaptation, and a healthier environment.
Promoting market integration and mobilizing investment, the Group supported a record €100 billion in new investments for Europe’s energy security in 2024 and mobilized €110 billion in growth capital for European startups, scale-ups, and pioneers. Around half of the EIB’s financing in the EU is directed to cohesion regions, where per capita income is below the EU average.

About Galp
Galp is an energy company committed to developing efficient and sustainable solutions in its operations and the integrated offerings it provides to its customers. We create simple, flexible, and competitive solutions for the energy or mobility needs of large industries, small and medium-sized businesses, and individual consumers. Our offer includes various forms of energy – from electricity produced with renewable sources to natural gas and liquid fuels, including low-carbon options. As a producer, we operate in the extraction of oil and natural gas from reservoirs located kilometers below the sea surface, and we are also one of the leading Iberian producers of solar-based electricity. We contribute to the economic development of the 10 countries in which we operate and the social progress of the communities that host us. Galp employs more than 7,000 people from 52 nationalities. More information is available at www.galp.com.