"Galp has made the final investment decision that will allow the start of two large-scale projects, crucial to the decarbonisation of the Sines refinery and its energy products; these projects include an advanced biofuels unit with a production capacity of 270 thousand tons per year, in partnership with Mitsui, and the installation of 100 MW of electrolysers for the production of green hydrogen", reads the statement sent to the Securities Market Commission (CMVM).
These projects, two of the largest of this nature, according to the company, represent a global investment of 650 million euros. "This is a significant contribution to the transformation and growth of the industrial sector in Portugal, placing Galp at the forefront of the development of low-carbon solutions essential to ensuring the energy transition", said the president of Galp's Board of Directors, Paula Amorim, in the statement.
"These investment decisions were taken with the expectation that the evolution of the tax and regulatory framework in Portugal will not jeopardize the success of these large-scale projects, ensuring that our industrial operations remain competitive in the long term in a global context".
In explaining the projects, Galp thus announces that it has joined efforts with Mitsui, which holds 25% of the new advanced biofuels unit, "to produce and sell advanced biofuels in a unit adjacent to the Sines refinery, with a capacity of 270 thousand tons per annum".
This new unit "will produce renewable diesel (treated hydro vegetable oil - HVO) and sustainable aviation fuel (Sustainable AviationFuel - SAF) from used waste, allowing a reduction in greenhouse gas emissions by around 800 thousand tons annually ( Scope 3, CO2e), compared to available fossil alternatives", for a total investment of around 400 million euros.
It would be interesting to know where the feed stock for the advanced biofuels unit will come from. Biofuels always make me think of large monocultured fields that should produce food, but are now producing fuel.
By Tom from Lisbon on 25 Sep 2023, 14:40