Portugal: EIB finances Galp’s Renewable Hydrogen and Biofuels projects in Sines with €430 million

This article is published in association with European Investment Bank.

• The two projects, already in construction at the Sines Refinery, represent a total investment of €650 million.
• The Biofuels unit, financed with €250 million, will produce low-carbon fuels essential for the decarbonization of transport.
• The renewable Hydrogen production unit, financed with €180 million, will be one of the largest in Europe.

The European Investment Bank (EIB) has granted a €430 million loan for the construction of two key projects aimed at transforming Galp’s Sines Refinery, making a crucial contribution for the decarbonization of heavy-duty road transport and aviation.

Galp is developing the Biofuels unit, already at a construction stage, in partnership with Japan’s Mitsui, as part of a total €400 million investment, of which €250 million is provided by the EIB. This unit will convert vegetable oils and residual fats into sustainable aviation fuel (SAF) and renewable diesel of biological origin (HVO) with identical characteristics to the fossil-based fuels used in regular combustion engines.

This unit, set to begin production in 2026, will have the capacity to produce up to 270,000 tons of renewable fuels, enough for Portugal to comply with the European Union mandate for this type of fuels in aviation. SAF is essential for air transportation – responsible for about 3% of global greenhouse gas emissions – to begin its decarbonization journey.

In parallel, Galp is building in the same site a 100MW electrolyser, a €250 million investment of which the EIB will finance €180 million. It is set to produce up to 15,000 tons of renewable hydrogen per year when it goes online next year, becoming one of the first operational units of its size in Europe.

“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 supporting the production of advanced biofuels and renewable hydrogen, we are contributing to a more energy-independent Europe that aligns with global climate goals.”

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

The two projects support the goal of climate neutrality by 2050, in line with the European Green Deal, and strengthen the EU’s energy independence as outlined in the REPowerEU plan. The projects benefit from €22,5 in Recovery and Resilience Plan incentives.

Background information   

About the EIB  

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world. 

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.   

All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.   

Fostering market integration and mobilising investment, the Group supported a record of over €100 billion in new investment for Europe’s energy security in 2024 and mobilised €110 billion in growth capital for startups, scale-ups and European pioneers. Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average. 

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About Galp

Galp is an energy company committed to developing efficient and sustainable solutions in its operations and the integrated offerings it provides to its customers. We create simple, flexible, and competitive solutions for energy or mobility needs, catering to large industries, small and medium-sized enterprises, as well as individual consumers.

Our portfolio includes various forms of energy – from electricity generated from renewable sources to natural gas and liquid fuels, including low-carbon options. As a producer, we engage in the extraction of oil and natural gas from reservoirs located kilometers below the ocean surface, and we are also one of the leading solar-based electricity producers in the Iberian region.

We contribute to the economic development of the 10 countries where we operate and to the social progress of the communities that welcome us. Galp employs more than 7,000 people from 52 nationalities.