The European Investment Bank (EIB) has granted a €180m loan for a 100MW electrolyser project at Galp’s Sines Refinery in Portugal.
The loan is part of a €430m financing package from the EIB that will transform the refinery so it can make a “crucial contribution” to the decarbonisation of heavy road transport and aviation.
Galp is building a 100MW electrolyser, with a total investment cost of €250m, which it is expected to produce up to 15,000 tonnes of renewable hydrogen per year from next year, becoming one of the first operational units of its size in Europe.
Galp is also developing a biofuels unit, already under construction, in partnership with Japan’s Mitsui, as part of a total investment of €400 million, of which €250 million is provided by the EIB.
“These pioneering projects are a clear example of how we can combine finance, 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 green hydrogen, we are contributing to a more energy-independent Europe aligned with global climate goals.”
Ronald Doesburg, a member of Galp’s Executive Board responsible for the Industrial area, added: “We have mobilised partners, private investment and European funding to promote a transformative project that gives life to European and national energy and industrial policies.
“More from energy companies, public funding and government support is needed if we are to maintain Portugal’s relevance in an increasingly unstable world.”