BAKU, Azerbaijan, February 28. The European Investment Bank (EIB) has approved a 430 million euro loan to finance two key projects at Galp’s Sines Refinery in Portugal, aimed at advancing the decarbonization of heavy-duty road transport and aviation, Trend reports.
The funding includes 250 million euros for a new biofuels unit, developed in partnership with Japan’s Mitsui as part of a 400 million euro investment. The facility, currently under construction, will produce up to 270,000 tons of renewable fuels annually, including sustainable aviation fuel (SAF) and renewable diesel (HVO). Set to begin operations in 2026, the unit will help Portugal meet EU mandates for SAF use in aviation.
Additionally, the EIB is providing 180 million euros for a 100MW electrolyzer at the refinery, part of a 250 million euro project. Expected to start production next year, the facility will generate up to 15,000 tons of green hydrogen annually, positioning it among the first large-scale units of its kind in Europe.
EIB Director General Jean-Christophe Laloux emphasized that supporting advanced biofuels and green hydrogen contributes to Europe’s energy independence and climate goals. Galp’s Executive Board Member Ronald Doesburg highlighted the role of public and private investment in driving energy transformation, calling for continued support to maintain Portugal’s competitiveness.
The projects align with the European Green Deal and REPowerEU objectives, benefiting from 22.5 million euros in Recovery and Resilience Plan incentives.