Galp taps €430M from EIB to expand H2 and biofuels projects
Published on: Mar 12, 2025
The two projects are currently under construction and represent a total investment of €650 million.
The European Investment Bank (EIB) has granted Galp a €430 million loan to support the construction of two major projects at the Sines refinery to decarbonize heavy road transport and aviation.
The renewable hydrogen production unit, backed by €180 million in EIB financing, is set to become one of Europe’s largest hydrogen infrastructures. The project includes the installation of a 100 MW electrolyzer, capable of producing up to 15,000 tons of renewable hydrogen annually.
This facility will play a critical role in advancing Europe’s clean energy transition and strengthening energy independence.
On the other hand, the biofuels unit will be developed in partnership with Japan’s Mitsui and financed with €250 million from the EIB, representing a €400 million investment. This facility will convert vegetable oils and residual fats into Sustainable Aviation Fuel (SAF) and Hydrotreated Vegetable Oil (HVO).
With an annual production capacity of up to 270,000 tons of renewable fuels, this project will help Portugal meet its national aviation fuel incorporation mandate by 2026.
“We have mobilized partners, private investment, and European funding to drive a transformative project that aligns with both European and national energy and industrial policies. The energy sector faces increasing demands, but continued public incentives and government support are also essential for Portugal to maintain its relevance in an increasingly unstable global environment,” said Ronald Doesburg, Executive Board Member for Industrial Operations at Galp.
The two projects, currently under construction, represent a total investment of €650 million.
