Galp has taken the final Investment Decision on Green Hydrogen and HVO/SAF projects at its Sines refinery, Portugal
Galp has taken the final investment decision on two large scale projects to reduce the carbon footprint of the Sines refinery and of its products.
The projects include a 270 ktpa advanced biofuels unit, in partnership with Mitsui, and 100 MW of electrolysers for the production of green hydrogen. Both units are expected to have its first start up during 2025.
“These projects are some of the largest of their kind, representing an overall investment of c.€650 m. This is a significant contribution to the launch of the new industries of the future in Portugal, placing Galp at the forefront of the development of low carbon solutions necessary for the energy transition. The decisions are based on the expectation that the fiscal and regulatory developments in Portugal will not hinder the success of such large-scale investments.” - Paula Amorim, Chairwoman
Advanced biofuels unit
Galp and Mitsui are joining forces to produce and market advanced biofuels from Sines by creating a 75/25 joint venture (JV) and invest in a large scale 270 ktpa unit adjacent to the Sines refinery.
The unit will use waste residues to produce renewable diesel (hydrotreated vegetable oil - HVO) and sustainable aviation fuel (SAF), allowing to avoid c.800 ktpa of greenhouse gas emissions (Scope 3, CO2e), when compared to its fossil fuels alternatives.
This partnership brings together the vast industrial expertise of both companies, combining Galp’s market and operational synergies with Mitsui’s global presence, also supporting the procurement of the plant’s feedstock needs.
The plant will use Axens’ technology and the consortium Technip Energies / Technoedif Engenharia has been selected as the main Engineering, Procurement and Construction Management (EPCM) provider.
The total investments in the new plant are estimated at c.€400 m.
Galp will operate the plant and plans to consolidate proportionally (75%) all businesses related with the JV.
Green hydrogen unit
Galp will invest in the construction of a 100 MW electrolysis plant, to produce up to 15 ktpa of renewable hydrogen.
This large-scale project will allow the replacement of c.20% of the existing grey hydrogen consumption of the Sines refinery and may lead to greenhouse gas emissions reduction of c.110 ktpa (Scope 1 &2, CO2e).
The electrolysers will be supplied by renewable power, originated from long-term supply agreements, also leveraging on the Galp renewable power asset base. The unit will use industrial recycled water, with expected annual consumption representing less than 3% of the average annual needs of the refinery.
Plug Power was awarded the order for the 100 MW proton exchange membrane (PEM) electrolysers, whilst Technip Energies will be the main EPCM provider.
The total investments for this green hydrogen project are estimated at c.€250 m.
Categories
Investments
2022-01-01
€ 400 mln at ZILS - Sines Industrial and Logistics Zone (PT)2022-01-01
€ 250 mln at ZILS - Sines Industrial and Logistics Zone (PT)Countries
Companies
Latest news
Clariant's MegaMax™ 900 catalyst: Powerful start at European Energy's e-methanol plant
European Energy successfully started up their e-methanol plant in Kasso, Denmark, using Clariant’s MegaMax 900 catalyst. The Power-to-X plant is one of the world’s first and currently largest comme...
Kazakhstan’s largest petrochemical project: first piles driven for polyethylene plant in Atyrau
The construction of the plant, which has a capacity of 1.25 million tons of polyethylene per year and an investment of approximately 7 billion US dollars, is expected to be completed by 2028, with ...
Vynova Alkoxides GmbH awards first basic engineering contract for new alcoholates plant at the Lülsdorf site in Germany.
Vynova starts the construction of a new alcoholates plant at the Chemiepark Lülsdorf. A contract for basic engineering has been awarded to an external engineering company for finalising the basic d...
Norway: TotalEnergies and partners launch the 2nd phase of Northern Lights CCS project
Northern Lights will increase its CO2 storage capacity to more than 5 Mt per year. Northern Lights signed a commercial agreement with Stockholm Exergi for transport and storage of 900 kt CO2/y, fro...