In Portugal, Mitsui & Co. has agreed to invest in a renewable diesel (hydrotreated vegetable oil/HVO) and sustainable aviation fuel (SAF) production business operated by Galp SGPS, S.A., Portugal’s biggest energy company. A joint venture company will be established once necessary authorities’ clearances are obtained. Galp will own 75% of its shares and Mitsui 25%.
As the only oil refiner in Portugal, Galp has been operating the Sines Refinery since 1978. The Lisbon-based company has been stepping up its investment in the energy transition field and pursuing fuel conversion initiatives. This project will involve the construction of facilities within the Sines Refinery, which are capable of being switched between HVO and SAF production modes. With the first HVO production in the end of 2025, the commercial operation date of the project is expected in 2026, and it is anticipated that the facilities will also be used to produce SAF, demand for which is expected to increase over the long period of time. In addition to its investment in the production business, Mitsui will also take responsibility for the overall value chain, including the procurement of feedstocks, primarily from Asia, and the sales of the products.
