The European Investment Bank (EIB) has announced a €430 million loan to the construction of two pioneering renewable energy projects at Galp’s Sines Refinery. With a total investment of €650 million. 17143h

The funding will be allocated to two major projects: a biofuels production unit and a renewable hydrogen facility. The biofuels unit, backed by €250 million in EIB financing, is being developed in partnership with Japan’s Mitsui as part of a €400 million investment. This facility will transform vegetable oils and residual fats into sustainable aviation fuel (SAF) and renewable diesel (HVO), offering a low-carbon alternative for the transport sector. Scheduled to commence operations in 2026, the unit will produce up to 270,000 tonnes of renewable fuels annually, ensuring Portugal meets European Union aviation fuel mandates.

The second project involves the construction of a 100MW electrolyser at the Sines site. With a total cost of €250 million and €180 million financed by the EIB, this facility will generate up to 15,000 tonnes of renewable hydrogen per year. Expected to be operational in 2025, the plant will be one of the largest of its kind in Europe, significantly contributing to the decarbonisation of heavy industry and transport.

“These pioneering projects are a clear example of how we can combine financing, innovation, and our environmental commitment to promote a fair and sustainable energy transition,” said Jean-Christophe Laloux, Director General, Head of EU Lending and Advisory at the EIB. “By ing the production of advanced biofuels and renewable hydrogen, we are contributing to a more energy-independent Europe that aligns with global climate goals.”

Ronald Doesburg, Galp’s Executive Board Member responsible for the Industrial area, emphasised the importance of collaboration, stating: “We have mobilised partners, private investment, and European financing to drive a transformative project that brings European and national energy and industrial policies to life. More is needed from energy companies, public funding, and government if we want to maintain Portugal’s relevance in an increasingly unstable world.”

The projects align with the European Green Deal and the EU’s REPowerEU strategy, which aims for climate neutrality by 2050 while enhancing the region’s energy independence. Additionally, the initiatives will benefit from €22.5 million in incentives from Portugal’s Recovery and Resilience Plan.