The EU will provide funding for Portuguese oil and gas company Galp’s 100MW green hydrogen production facility at the Sines Refinery in Portugal.
The European Investment Bank (EIB) announced today (February 27) that it will loan €180m ($187m) to support Galp’s hydrogen project, with an additional €250m ($260m) going towards its biofuel unit.
Galp reached a final investment decision (FID) on its green hydrogen project in 2023. The electrolyser is set to begin production in 2026, delivering up to 15,000 tonnes of green hydrogen annually and becoming one of the “first” operational units of its scale in Europe, according to the EIB.
Read more: Galp reaches FID on green hydrogen, HVO and SAF projects
“By supporting the production of advanced biofuels and green hydrogen, we are contributing to a more energy-independent Europe that aligns with global climate goals,” explained Jean-Christophe Laloux, Director General, Head of EU Lending and Advisory at the EIB.
US electrolyser manufacturer Plug Power supplied production units to Galp. The hydrogen production plant will potentially scale up to 600MW in the future to supply all of the energy demand for the Sines refinery.
The two projects at the refinery represent a combined investment of €650m ($678m). Galp’s biofuel unit, currently under construction in partnership with Mitsui, will produce sustainable aviation fuel (SAF) and hydrotreated vegetable oil (HVO).
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