HVO@Galp Project

Hydrogenated Vegetable Oil (HVO) is a biofuel that can be produced from vegetable fats and oils containing fatty acids and triglycerides. The term HVO is used for fuels derived from the hydrogenation and hydrocracking of different raw materials, such as used cooking oils, tall oil, rapeseed oil and animal fats.

In general, HVO has a similar performance to fossil fuels, but with less environmental impact, because by replacing them, it contributes to reducing greenhouse gas emissions.

This biofuel therefore makes it possible to decarbonise the transport sector more quickly, without having to invest in new infrastructure or renew the vehicle fleet - as is the case with electric mobility, for example. It therefore represents a complement to other forms of mobility - something particularly relevant in the field of long-distance road transport, whose decarbonisation technologies are still in the development phase.

Today, HVO is the third most common type of biofuel in the world, after ethanol and FAME.

The renewable diesel and renewable jet produced at this industrial plant come from sustainable raw materials such as used cooking oil, oily waste (waste rapeseed oil, sunflower, corn, palm, soya, fruit or bleaching earth) and animal fats.

These raw materials have very similar chemical characteristics to the mineral version currently used. In this way, the high performance of the fuel in existing combustion engines is guaranteed, with the benefit of avoiding carbon dioxide emissions.

The HVO@Galp project will focus on the consumption of waste from agricultural/forestry, domestic and industrial activities. Galp thus aims to obtain sustainable raw materials that do not compete directly or indirectly with food and feed and do not involve the use of agricultural land.

The HVO@Galp project will produce three main products of 100% renewable origin - HVO, SAF and bionaphtha - which are crucial for the energy transition and decarbonisation of the transport sector, both light and heavy road transport and air transport.

• HVO: The HVO@Galp project will make it possible to reduce biofuel imports, increase Portugal's resilience and enable the country to be self-sufficient in meeting the European Union's renewable energy targets
• SAF: Sustainable aviation fuels maintain the performance of aviation fuels (jet) of fossil origin, but with a fraction of their carbon footprint. Galp aims to increase the blending of SAF with traditional fossil jet to provide airlines with an alternative that allows them to decarbonise their own flights
• Bionaphtha: Bionaphtha is a mixture of hydrocarbons consisting essentially of paraffins that can be used in a steam cracker to produce light olefins and aromatics. In terms of use and performance, bionaphtha is similar to traditional naphtha of fossil origin, but it reduces carbon dioxide emissions

In addition to HVO, SAF and bionaphtha, the unit will also produce biopropane and biofuel gas.

The work will begin in 2024 and is expected to last 25 months. It is anticipated that the operating phase will begin in 2026, once the installed equipment has been commissioned and tested.

The HVO@Galp project will be developed inside the Sines refinery and in the adjacent area belonging to ZILS, occupying an area of around nine hectares.

This location allows for greater savings in resources, resulting from the exploitation of synergies, which translates into lower investment and operating costs. Synergies include:

• Use of infrastructures and ancillary services common to both the new and existing refinery facilities: fluid supply (industrial water, drinking water for human consumption, etc.), final disposal of effluents, waste management, among other examples
• Prior existence of suitable infrastructure for shipping products, such as a pipe conveyor, good road access, a railway branch line and a seaport with all the conditions for docking large ships

The HVO@Galp project is an investment of 269 million euros. It will make a positive contribution to increasing gross domestic product and will be an important factor in the economic development of the municipality of Sines and the Alentejo region. These positive effects are projected to have a nationwide impact.

The HVO@Galp project will have a maximum production capacity of 262.7 kt/year of biogas oil and 193 kt/year of biojet and other products, also of renewable origin, such as naphtha and propane.

The HVO@Galp project will make it possible to reduce carbon dioxide emissions by around 8.8 million tonnes over 10 years by contributing to the decarbonisation of the transport sector through the production of biofuels - HVO, SAF, bionaphtha, biopropane and biofuel gas - which will replace up to 263,000 tonnes of fossil diesel, 193,000 tonnes of fossil jet and between 4 and 69,000 tonnes of fossil naphtha per year.

The technology needed to obtain biofuels is a key element in integrating the renewable energy sector with the gas, fuel and chemical sectors. Biofuels produced from waste will become one of the main sources of energy for the transport sector, with a view to energy transition, a decarbonised economy and a sustainable society.

The industrial plant will operate continuously, meaning 24 hours a day, 7 days a week, 365 days a year. The current operating regime at the Sines refinery will not change once the HVO@Galp project is implemented.

During the construction phase of the project, it is anticipated that there will be 750 workers assigned to the activities - a figure that could reach 1,050 at the peak of operations.

Subsequently, during the unit's operating phase, 76 new direct jobs will be created, allocated to the operation of the asset, the unit's management and business development support areas (such as Process Engineering, HSE, Trading, etc.). Between 150 and 200 indirect jobs are also expected to be created.

In short, it is projected that a total of between 226 and 276 jobs will be created by 2025 - which reinforces the socioeconomic contribution of this project to both the region and the country.

During the construction phase of the project, the average daily traffic will be 700 light vehicles and 30 heavy vehicles, which will use the existing southern access to the refinery.

aicep Global Parques, the managing body of ZILS, will build a connection to the IP8 for a new southern access to the refinery, which will be used by the HVO@Galp project to receive raw materials and dispatch waste by road. Products will be dispatched via the existing northern access.