Portuguese energy major Galp Energia SGPS SA (ELI:GALP) has received a EUR-430-million (USD 450.5m) loan from the European Investment Bank (EIB) for the installation of a 100-MW electrolyser and a biofuel production unit at its Sines Refinery.
Galp will use EUR 180 million of the total sum to cover a portion of the EUR-250-million investment in the green hydrogen production project. The rest of the loan will support the construction of the biofuel unit, which requires a total spending of EUR 400 million.
The electrolysis plant is set to go online in 2026. Once up and running, it will produce up to 15,000 tonnes of green hydrogen per year.
The biofuel unit, which is being developed in partnership with Japan’s Mitsui, is also set to commence operations next year. With a capacity of up to 270,000 tonnes of renewable fuels, it will convert vegetable oils and residual fats into sustainable aviation fuel (SAF) and renewable diesel of biological origin (HVO).
