Portuguese energy company Galp, in partnership with Japan’s Mitsui, reached a final investment decision (FID) on two transformative projects. Both companies have a shared goal of reducing the carbon footprint associated with the Sines refinery and its associated products.
The first of these projects contains the establishment of a 270 thousand tons per annum (ktpa) advanced biofuels unit. The second is the development of 100 megawatts (MW) of electrolyzers explicitly designed for the sustainable production of emission-free hydrogen.

Both of these units are on track to begin operations in the year 2025. They represent a significant leap forward in the pursuit of cleaner and more sustainable energy solutions.
In addition, the hydrogen production project is particularly important, aiming to yield up to 15 ktpa of renewable hydrogen. This attempt could replace around 20% of the Sines refinery’s current hydrogen production, which mainly relies on fossil fuels. By including this technology, Galp and Mitsui are making significant strides in decarbonizing a vital aspect of their operations.
Furthermore, key players will include Plug Power, which will be responsible for the supply of 100 MW proton exchange membrane (PEM) electrolyzers. Additionally, Technip Energies will be the primary engineering, procurement, and construction management (EPCM) provider. It will ensure the successful realization of these initiatives.

What’s more, the combined investment for these projects is truly substantial, adding up to about €650 million. This financial commitment will play a vital role in reshaping and fortifying Portugal’s industrial landscape. Also, it will position Galp as a frontrunner in the development and deployment of low-carbon solutions that are necessary to the ongoing global energy transition.
Finally, Paula Amorim, the Chairperson of Galp, highlighted the immense importance of these projects in propelling Portugal’s industrial sector towards sustainability and low-carbon solutions. These initiatives not only represent a significant step forward in reducing carbon emissions but also reflect a commitment to innovation and leadership in the quest for a more sustainable energy future.
Related Article: Reuters
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