Mitsui invest in Galp to bring SAF production to Portugal

Mitsui has invested in Galp for Renewable Diesel (Hydrotreated Vegetable Oil, HVO) and Sustainable Aviation Fuel (SAF) production at their Sines refinery. The total investment is around €400m and the facility will produce 270,000t/year of HVO and SAF combined.

Portugal’s biggest energy company expects first production at the end of 2025, with commercial operations beginning in 2026. The production will alternate between producing HVO and SAF. The Japanese conglomerate, Mitsui, will be responsible for sourcing the feedstock – waste residues such as used cooking oil (UCO) and animal fats, sourced primarily from Asia – and for the sale of the products. Galp will be responsible for the refinery operations.

“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 necessary for the energy transition,” said Paula Amorim, chairperson, Galp. “These investment decisions were made on the expectation that the fiscal and regulatory developments in Portugal will not hinder the success of such large-scale projects, ensuring that our industrial operations remain long-term competitive in a global playing field.”

The facility will use Axens technology and the Technip Energies consortium will be the Engineering, Procurement and Construction Management (EPCM) provider.

The companies will enter into a joint venture, with Galp owning 75% of the shares and Mitsui 25%, once authority clearances are given.