Low Carbon Initiatives

Low Carbon Initiatives

Galp develops new energy efficiency solutions and new business models, promoting sustainable energy consumption in our operations and with our customers and partners.

Low Carbon Initiatives | Galp

A competitive and innovative upstream

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.

Avoided GHG emissions

In 2020, Galp avoided the emission of approximately 922 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.

An efficient and flexible refining & midstream

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, both in the Sines and Matosinhos refineries, with a view to achieving continuous improvements, minimising process variations and reductions in waste and effluents.

In 2020 several energy efficiency projects were commissioned at the Sines Refinery, amounting to an investment of €4.4m, with a reduction potential of 81 ktonCO2, which consists of a 4% reduction in the refinery's total CO2 emissions. Relevant projects include the revamping of the Atmospheric Distillation Exchange Train and the Flare gas recovery.

                                                

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 2020, we implemented projects relevant to activity conversion and energy efficiency improvement.

 

CO2/CWT reduction targets for 2022 (based on the figures for 2013)
Sines refinery
-25%

 

We monitor the energy efficiency of our activities through the Solomon Energy Intensity Index. Since 2015, the Matosinhos refinery has been ranked in the upper quartile of the Solomon Reference. We also assume the objective of putting both refineries in this quartile by 2021, reinforcing Galp's position as an efficient refining industry. We establish energy efficiency targets, through the Energy Efficiency Index, to promote the continuous improvement of our operations aligned with the activity requirements:

  Targets - Energy Intensity Index    
Refinery 2018 2019 2020 Target 2021
Sines 96.2 97.5 95.8 92.0
Matosinhos 80.7 84.0 91.5 -

 

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 2020, 245,184 m3 of biofuels were incorporated into fuels sold in Portugal and Spain, including 20,600 m3 of second-generation biodiesel produced by Enerfuel. The integration of these low-carbon fuels prevented the emission of over 640 ktonCO2e when compared to an exclusively fossil fuel.

We have taken an active role in the technological development of the biofuels segment in Portugal, participating in several projects focused on the co-processing of used cooking oil, the generation of ethanol and bio-oil through forest biomass and the production of synthetic crude oil and biomethane through urban solid waste and waste derived fuels. In 2020, the following projects stood out:

  • Submission of an application to the Innovation Fund (EU), in the field of production of advanced biofuels and recycled carbon from residual feedstocks;

  • Partnership with Valorsul to assess the technical and economic feasibility of a biogas purification plant using anaerobic digestion to produce biomethane and inject it into the natural gas network, for use in passenger transport fleets, or others;

  • Participation in BIOREF, Collaborative Laboratory for Biorefineries.

Investing in renewables and new business models

Investment strategy aligned with the energy transition

Galp is developing a resilient portfolio, with over 40% 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 (10% to 15% of future investments), as well as increasing the weight of  natural gas in its portfolio.

Building a strong renewable power generation position in Iberia

Galp continued to strengthen its position in renewable power generation by acquiring solar PV licences both in Portugal and Spain. In January 2020, Galp agreed to acquire solar PV projects in Spain, comprising a total generation capacity of c.2.9 GW by 2023, of which over 900 MW are already operational.

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 and Grenergy Renovables. Galp’s total renewable power provided through PPAs now amounts to over 650 GWh per annum, in line with the strategy of securing a balanced and competitive long-term sourcing portfolio for its power activities.

 

With our customers and partners

New realities, new services and products

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 at our service stations in Portugal. Through Galp Electric, we had 65 fast charging stations and 448 normal charging stations, by the end of 2020. We are also developing a charging station infrastructure in Spain, which already includes 31 stations.

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.

EI - Energia Independente

EI – Energia Independente is Galp’s strategy for the development of decentralised energy production from renewable sources.

In 2020, during our first three months of operation, more than 500 domestic installations and 8 companies’ installations were carried out, which have allowed to avoid about 1.2 ktonCO2e.

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.

In 2020, the implemented projects have saved 354 tCO2e, in addition to an annual saving of over 1,583 tCO2e from other projects executed by Galp’s Energy Solutions in previous years.

GoWithFlow

Galp, through GoWithFlow, is promoting an integrated solution for its customers, in transition to electrification, including charging, fleet management and vehicle sharing systems. GoWithFlow has 4,500 vehicles and 4,000 charging stations.

In 2020, GoWithFlow won the “Best Clean Technology and Industry 4.0 Startup” award from BGI – Building Global Innovators and EIT Digital – European Institute of Innovation & Technology. GoWithFlow was also voted one of the biggest Portuguese scaleups in 2020 and was included in the ranking of the 25 most promising startups in Portugal.

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.

Hydrogen, the energy of the future

Together with national and international partners, is developing a feasibility study for a pan-European project to implement a green hydrogen production industrial cluster, based in Sines.

Digitisation reaches Upstream

After years of collaboration, Galp and IBM are in the process of completing the development and commercialization of the Cognitive Geoscience Advisor (CGA), a powerful tool that combines artificial intelligence tools and data analysis, with the potential to accelerate and optimize the development of hydrocarbon exploration projects by increasing their competitiveness and efficiency.

Energy Impact Partners

Galp is the only Iberian energy company Limited Partner (LP) at 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, where Galp will invest c. €20 m, the majority of which over a five year investment period.

Galp 21

Galp 21 is a university cooperation program whose purpose is the annual development of 21 studies and works carried out by students or master’s students in Portugal’s top three universities - Universidade de Aveiro (University of Aveiro), Instituto Superior Técnico (Higher Technical Institute) and the Faculdade de Engenharia of the Universidade do Porto (Engineering School of the University of Porto). Its aim is to identify and develop rational energy systems and behaviors that may be applied to the industry and buildings.

The program is based on a shared mentoring system between Galp (the client manager), the client company and the university concerned. Galp follows up the studies’ accomplishment, with the objective of contributing to its materialization into specific energy efficiency projects in its clients.

Consult here the main figures of the programme in 2019.

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