Mitsui to invest in HVO and SAF production at Galp’s Sines refinery in Portugal

Japan-headquartered shipping company Mitsui has agreed to invest in Portugal-based energy company Galp’s hydrotreated vegetable oil (HVO) and sustainable aviation fuel (SAF) production business.

PHOTO: Galp's Sines Refinery in Portugal. Mitsui

Both companies will jointly venture into a new company with Galp set to hold a 75% stake, while Mitsui will hold the remaining 25%.

HVO and SAF will be produced in Galp’s Sines refinery, Mitsui said. The first batch of HVO will be produced at the end of 2025 and commercial operation is expected to start in 2026, it further added.

Mitsui will also facilitate the “overall value chain, including the procurement of feedstocks, primarily from Asia, and the sales of the products.”

Renewable diesel or HVO is produced from waste residues feedstock like used cooking oil (UCO) and animal fats. The HVO can be used for producing marine biofuel blends.

“Demand for HVO is expected to be growing, especially in Europe where policies to encourage the use of biofuels are introduced,” the shipping company added.

By Aparupa Mazumder 

Please get in touch with comments or additional info to news@engine.online