By Mauro Orru

Galp said Monday that some 650 million euros ($692 million) would be invested in two large-scale projects in Portugal to reduce the carbon footprint of the Sines refinery and its products.

The Portuguese energy company said about EUR400 million would go toward an advanced biofuels unit that Galp is creating in a joint venture with Japan's Mitsui & Co., with the remaining amount allocated to a green hydrogen unit.

The joint venture, in which Galp holds a 75% stake, will invest in the advanced biofuels unit that will use waste residues to produce renewable diesel such as hydrotreated vegetable oil, and sustainable aviation fuel.

Separately, Galp will invest to develop a 100-megawatt electrolysis plant to produce renewable hydrogen.

"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," said Galp Chair Paula Amorim.

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

(END) Dow Jones Newswires

September 25, 2023 03:17 ET (07:17 GMT)

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