CO₂ management in the pre-salt

Since the beginning of operations at Block BM-S-11, located in the ultra-deep waters of the Brazilian pre-salt (Santos basin), the partners took the initiative to separate and inject into the reservoir the CO₂ from the natural gas produced.

This was a win-win solution, leading to a reduction in the carbon footprint of our operation and more consistent reservoir pressure. Using a selective permeation method at the production units, we separate the CO₂ from natural gas, and inject it back into the reservoir using the WAG method.

In 2021, the Company made a Final Investment Decision to develop Phase 1 of the Bacalhau field in the pre-salt of the Brazilian Santos basin. This project is characterised by an innovative development concept, integrating a Combined-Cycle Gas Turbine system to increase the energy efficiency of the power generation, while decreasing emissions, resulting in an average carbon intensity of less than 9 kgCO2e/bbl for the entire field’s life cycle.

Avoided GHG emissions

In 2021, Galp avoided the emission of approximately 1.350 ktonCO₂e through the implementation of energy efficiency measures in its refineries, the integration of biofuels, the production and sale of renewable energy, the supply of decentralised energy production and energy efficiency services, and the delivery of electricity for electric mobility.

A more efficient refining system

Galp remains focused on optimising its refining system processes and maximising energy efficiency. We have several ongoing programs and projects to optimise the use of resources in our operations in the Sines refineries, with a view to achieving continuous improvements, minimising process variations and reductions in waste and effluents.

In 2021, our teams worked to identify and implement new efficiency and emissions reduction projects and currently have identified several projects to be implemented by 2025, with an estimated investment of €32 m which will materialize energy savings of 113 GJ/h and avoid 53 ktonCO2e/year. This year, Galp implement several measures, including the excess air control in the furnaces, which reduced Natural Gas consumption and avoided 5.3 ktonCO2e/year and the debottlenecking of the catalytic reforming unit that allowed the increase of the unit load and the consequential generation of more H2, avoiding 22.6 ktonCO2e/year. The continuous implementation of energy efficiency projects allowed the company to continue to improve the performance of its facilities, which in 2021 reduced its intensity by around 10% compared to 2015 to 29.4 kg CO2/CWT.

We aim to be a reference when it comes to the carbon intensity of our refining activity, for this we will continue to invest in projects that promote energy transition. In 2021, we implemented projects relevant to activity conversion and energy efficiency improvement.

We monitor the energy efficiency of our activities through the Solomon Energy Intensity Index and we establish energy efficiency targets, to promote the continuous improvement of our operations aligned with the activity requirements:

The Covid-19 pandemic has impacted the global demand for oil products, resulting in a challenging international refining context throughout the year. The decrease in the level of crude oil processing has impacted the energy efficiency of the facilities, despite the positive results achieved by the various projects implemented. 

Production of biofuels

We are present in the development of biofuels, which represents a proven solution with immediate effects, and which can be incorporated into existing liquid fuels. Our industrial unit in Sines, Enerfuel, is focused on the production of second-generation biofuels, which we want to develop in order to leverage the production of advanced biofuels.

In 2021, 257.584 m3 of biofuels were incorporated into fuels sold in Portugal, including 27,000 m³ of second-generation biodiesel produced by Enerfuel. The integration of these low-carbon fuels prevented the emission of over 678 ktonCO₂e when compared to an exclusively fossil fuel.

During 2021, Galp announced it was analysing the development of a HVO plant in the Sines refinery with the capacity to produce 270 ktpa of advanced renewable products. This unit is being designed to have the flexibility to produce both renewable diesel and Sustainable Aviation Fuel (SAF) and is projected to go online before 2025.

The Company also produces HVO in a hydrogenation unit at its Sines refinery. This biofuel results from the co-processing of vegetable oil with diesel, resulting in a biofuel with characteristics similar to fossil fuels. In 2021, production reached approximately 7.4 kton, equivalent to a reduction of 24 kton of CO2 emissions.

Investment strategy aligned with the energy transition

Galp is developing a resilient portfolio, with around 50% of its planned investments to be allocated to projects that promote the energy transition. The Company will foster economically and environmentally sustainable solutions, reinforcing its investment strategy in renewable energies and in new business models, as well as increasing the weight of  natural gas in its portfolio.

Building a strong renewable power generation position

Galp continued to strengthen its position in renewable power generation, increasing its total gross capacity to c.4.7 GWp, including c.1 GW already in production.

Galp entered the Brazilian sizeable renewables market, agreeing to acquire and develop projects of 594 MWp of solar PV capacity at the early stages of development. We also reinforced our position in Spain, with the acquisition of nearly 400 MWp of new solar PV capacity under development.

Galp's strategy to expands into the renewable generation space aims to enlarge our portfolio 10-fold, reaching 12 GW of gross installed capacity by 2030.

Strengthening the power offer through renewable power purchase agreements (PPA)

Galp has strengthened its commercial portfolio to provide renewable power to its customers by establishing two PPAs in Spain, with X-Elio (aka Cercena Investments) and Grenergy to supply solar energy.

Galp electric mobility

Galp has developed an electric transportation strategy focused on an integrated commercial offering, through the inclusion of electric transportation solutions in our commercial offer, and the implementation of a network of fast-charging points in Portugal and Spain. 

The acquisition of Mobilectric in 2021 gave an extra impulse to rapidly increasing the network of charging points operated by Galp. By the end of the year these totalled 1,146 charging stations in Portugal and 40 in Spain, 197 of which are fast charging stations. Sales of electricity for mobility increased to 3.4 GWh and correspond to an estimated 4.8 ktons of avoided CO2 emissions.

We have continued to seek to meet our customers’ expectations, which is why since 2016 Galp has provided Evologic diesel and gasoline, a new fuel range with additives allowing greater savings, extended engine life and greater efficiency.

Galp Solar

Galp Solar is Galp’s strategy for the development of decentralised energy production from renewable sources, based on smaller scale solar power generation systems and services aiming at maximising energy consumption and efficiency both to B2B and B2C segments.

At the end of 2021, Galp Solar already has an installed capacity of c.13 MW, covering more than 4,000 clients in Iberia.

During the year, the brand also developed relevant projects on Galp’s assets, making our service stations and refining activities more sustainable. At Galp’s Sines refinery, Galp Solar is installing solar panels with a capacity of 21 MW, corresponding to 10% of our refinery electrical needs.

Galp Energy Solutions

Through our energy solutions segment, Galp offers its clients a wide range of services specifically designed to meet the needs of the industry, buildings and transport segments in the national market. Through energy performance contracts, implemented using the ESCO (Energy Service Companies) model, and energy implementation projects, Galp supports its clients in the reduction of their energy consumption and costs and avoiding greenhouse gas emissions.

Galp Energy Solutions implemented energy efficiency solutions in 13 customers, helping to lower their energy consumption and providing energy from less intensive energy sources. These projects are estimated to have avoided 700 tonCO2e.

GoWithFlow

Galp, through GoWithFlow, is promoting an integrated solution for its customers, in transition to electrification, including charging, fleet management and vehicle sharing systems.

During 2021, GoWithFlow already established business development teams in the U.K. and Spain and has secured contracts with more than 8,000 mobility assets (vehicles and charging stations).

Vehicle-to-Grid Technology (V2G)

Galp is leading the V2G pilot project in Azores, which allows electric car batteries not only to receive but also to supply power to the electric grid.

The 10 EVs in the project have so far consumed 82 MWh and injected 45 MWh back on the grid.

Hydrogen, the energy of the future

Galp is developing two green hydrogen projects to accelerate the decarbonization of the Sines hub. One of these projects consists in the development of a 100 MW electrolyser in Sines, currently working on the basic engineering as well as on securing key support mechanisms for the Final Investment Decision.

In parallel, Galp is co-leading, together with EDP, a consortium comprised of 13 European entities that submitted an R&D project to the EU “Green Deal Fund” and was awarded a €30 m grant for the development of a 100 MW electrolyser.

Additionally, and in order to accelerate the learning curve, Galp is developing a 2 MW pilot in Sines expected to start production in 2023.

Energy Impact Partners

Energy Impact Partners is a global venture capital fund investing in the world’s best industrial and energy scaleups, that promotes partnerships between their LPs (Global top corporations) and their portfolio companies.

In 2021, Galp increased its participation in this venture capital fund and has been involved in innovative ventures, looking at bringing in some as new business partners that will help Galp successfully navigate the energy transition.