Portugal's Environmental Agency Approves Galp's Eco-Friendly Biodiesel and Biojet Plant

Europe: On Monday, Portugal's environmental watchdog announced that it had given the go-ahead for a plan by the country's largest oil business, Galp to build an industrial-scale facility at its Sines refinery to create Biodiesel and biojet fuel from cooking oils. At its refinery south of Lisbon, Galp proposes to establish its first 100 megawatt (MW) green Hydrogen unit. With an initial expenditure of 269 million euros ($302 million), Galp hopes to start the Hydrogenated Vegetable Oil (HVO) plant there.

The company hopes to progressively establish zero-Carbon Hydrogen electrolysis using renewable energy in Portugal, where it is now the country's largest consumer of Hydrogen produced from natural gas. For the corporation to make a final investment choice, the regulator's approval is necessary.

Galp expects to spend roughly 50% of its capital investment to low-Carbon activities until 2025 to hasten its decarbonization processes. The APA environment agency in Portugal stated in a statement that it considered both the anticipated beneficial consequences as well as the discovered negative impacts when making its favourable conclusion.

The project, according to the government, aimed to convert waste materials such old cooking oils and animal fats into fuels for immediate use that were derived from renewable sources, Biodiesel and biojet, which are also recognized as sustainable aviation fuel (SAF), are included. SAFs are a substitute for conventional jet fuel and are better for the environment because they help replace dirtier petroleum products while giving waste new purposes.

The plant will have a maximum annual production capacity of 193,000 tons of biojet, 262,700 tons of Biodiesel, and other products made from renewable sources.

Lisbon, Portugal serves as the corporate headquarters for the worldwide energy company Galp Energia, SGPS, S.A. Galp is made up of more than 100 businesses involved in all facets of the production and supply of hydrocarbons, as well as their refining, trading, logistics, and retailing, co-generation, and renewable energy. In 1999, Petrogal, Gas de Portugal, and Transgas merged to form Galp. In Portugal, where it distributes gas and sells gasoline, it will be the leading oil and gas firm by the year 2020.

Galp revised its plan for resilient investment in a quickening of the energy transition in 2021. With a major position in renewable and new energies, a dynamic and digitally customer-focused firm, and industrial operations that are gradually decarbonizing and becoming a centre for green energy, Galp plans to restructure its portfolio.

The foundation of this strategy is a distinct capital allocation. This strategy currently translates into an allocation of more than 70% of our net investment during the period 2023–25, accelerating the transformation of our portfolio while ensuring financial discipline and focus on investment returns. After committing, in 2021, to allocate around half of our net investments in low or zero Carbon opportunities by 2025.