Galp's commitment in biofuels production to use residual and sustainable raw materials, aiming to maximize reductions in CO2 emissions. This is one of Galp's ways of contributing to the ongoing energy transition.

Furthermore, the own production of biofuels assures also security of supply, guaranteeing integration and commitment with the decarbonization of our fuels.

Galp operates Enerfuel, an industrial unit in Sines producing Fatty Acid Methyl Ester (FAME) biodiesel. This product is 100% made from the processing residual animal fats and used cooking oils. Enerfuel in 2020 produced approximately 26 kton.

Galp also produces Hydrogenated Vegetable Oil (HVO) in a hydrogenation unit at the Sines refinery. This biofuel results from the co-processing of vegetable oil with diesel, resulting in a biofuel with similar characteristics to fossil fuels. In 2020, production reached approximately 25 kton, equivalent to a reduction of 80 kton of CO2 emissions.

In 2020, 247,000 m3 of biofuels were incorporated into fuels sold in Portugal and Spain, including 30,000 m3 of biodiesel from residues produced by Enerfuel. The integration of these low-carbon fuels prevented the emission of over 650 ktonCO2e, when compared to a fuel of exclusively fossil origin.

Galp is also studying the installation of an HVO unit in Sines with a capacity of 270 ktpa, fully aligned with future European regulation and expected to be online by 2025.

Actions and objectives

Galp will continue to comply with the introduction of biofuels in Iberia in accordance with objectives set by the European Commission and the respective countries.

In 2020, Galp complied with the Renewable Energy Directive (RED), incorporating 10% biofuels in its energy content in Portugal, and 8.5% in Spain. The newly approved European regulation (RED II) will set the framework for the decade, promoting advanced biofuels and restricting the use of some raw materials, focusing in residual feedstocks, as current company strategy.

Galp's strategy for biofuels is in line with the ongoing decarbonisation initiatives, seeking to encourage the use of biofuels made from waste, which represented over 45% of the raw materials for this type of fuel in 2020.

In 2020, Galp continued to be actively involved in the technological development of the biofuels sector in Portugal, participating in several projects focused on the generation of biofuels through forest biomass, the production of synthetic crude oil and biomethane, and waste-derived fuels.

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