Summary:
EU provides €180 million funding for Galp's green hydrogen project.
Production to start in 2026, delivering 15,000 tonnes of green hydrogen annually.
Galp's initiative is among the first operational units of its scale in Europe.
Total investment for hydrogen and biofuel projects at the refinery is €650 million.
Biofuel unit will produce sustainable aviation fuel and hydrotreated vegetable oil.
EU Backs Galp's Green Hydrogen Initiative
The European Union is set to support Galp, a Portuguese oil and gas company, with a substantial €180 million loan for its 100MW green hydrogen production facility at the Sines Refinery. This funding was announced by the European Investment Bank (EIB), which also allocated an additional €250 million for Galp's biofuel unit.
Project Overview
Galp made a final investment decision (FID) on the green hydrogen project in 2023, with production expected to commence in 2026. This facility aims to produce up to 15,000 tonnes of green hydrogen annually, positioning it as one of the first operational units of its size in Europe, as stated by the EIB.
“By supporting the production of advanced biofuels and green hydrogen, we are contributing to a more energy-independent Europe that aligns with global climate goals,” said Jean-Christophe Laloux, Director General at the EIB.
Future Expansion Plans
The hydrogen production plant, supplied by US manufacturer Plug Power, could potentially expand to 600MW in the future to meet the entire energy demand of the Sines refinery. The combined investment for both the hydrogen and biofuel projects at the refinery is estimated at €650 million.
Biofuel Unit Details
Currently under construction in partnership with Mitsui, Galp’s biofuel unit aims to produce sustainable aviation fuel (SAF) and hydrotreated vegetable oil (HVO), contributing further to the transition towards renewable energy sources.
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