Operational excellence and transition towards circularity

Galp is focused on improving ecoefficiency performance, by optimising resources, effluents, emissions, and waste, through continuously improving its performance. We achieve this by promoting adoption of the best available technologies, setting goals and targets, and periodically monitoring performance in all geographies, subject to third party reviews. The management of environmental aspects due to Galp’s activities is ensured through its integrated management system, which is certified by ISO 14001.

We also aim to disseminate and increase circularity in our value chain, from construction, to operating and decommissioning. We will focus on using our resources and materials efficiently, increasing the reuse and recycle approach and identifying new opportunities in new projects.

Optimise resources, effluents, emissions and waste

Galp implements efficiency measures for the use and management of resources in all phases of the life cycle of facilities products and services, from the conception and design, operation and useful life, to the end of life and decommissioning. We understand operational eco-efficiency as a strategic issue, and we incorporate the risks and opportunities involved in its management.

In all our operations we operate according to four key axes:

Preservation of natural capital: we recognize natural capital as a value-generating element, thus, the destruction of ecosystems has a negative economic impact. We must encourage their preservation by controlling the finite stock of resources (creating conditions for the resource regeneration) and balancing the associated renewable flows.
Optimization of resource yields: we seek to minimize consumption and maximize utility through reuse, namely of materials and energy, thus promoting increased efficiency in the use of resources.
Redesign of processes and models: we promote the reconsideration of processes and business models, taking technical and economic, social and institutional issues into account, and, ultimately, redesigning them.
Innovation and new technologies: we take the development of new strategies based on innovation and technology as a basis for effecting and leveraging the changes to current society dynamics, enabling the changes in the productive systems, but also in society’s habits and culture.

In addition, we assume our responsibility to future generations by promoting energy and energy efficiency education and developing projects that promote responsible energy consumption among our customers, our partners and future consumers.

How we manage ecoefficiency and performance highlights

In 2023, we reduced energy consumption by 17% compared to 2022, correlating with a 10% decrease in processed feedstock influenced by the Sines refinery turnaround performed this year.

Freshwater withdrawal decreased by 14% compared to 2017, showing consistent reduction. This trend is not only related with the turnaround, but also reflects our dedication in implementing measures to improve ecoefficiency in operations. Water recycling rate slightly decreased by 2 p.p. compared to 2022, also explained by the turnaround. Freshwater withdrawal has increased in areas facing water stress. This is driven by the expansion of regions experiencing water stress, thereby affecting a larger number of sites.

Galp’s performance in other key environmental indicators, including waste, was strongly influenced by two turnarounds at the Sines refinery and the works to dismantle the Matosinhos industrial site.

Both these events contributed to increasing the total waste production (+32% vs 2022), particularly hazardous waste (+40% vs 2022) due to the works. It is important to note that 53% of the total waste generated, was valued.

	2020	2021	2022	2023
Total water withdrawal (10³ m³)	9,881	9,435	9,343	9,125
Total freshwater withdrawal (10³m³)	9,743	9,321	9,219	9,032
Total water recycled (%)	15	14	14	12
Wastewater (10³ m³)	5,913	5,822	6,125	6,109

Aware of the importance of air quality to public health and the environment, protecting it is already integrated in our operations management. We monitor our atmospheric emissions from both fixed and mobile sources and ensure that our performance is verified by an independent third-party.

To ensure our operations and our products are more sustainable, we have implemented the best available technologies (BAT) to reduce atmospheric emissions by:

Optimizing combustion systems
Adjusting the fuel portfolio
Introducing nitrogen oxide reducing additives to the Fluid Catalytic Cracking (FCC) unit
Incorporating new fuel specifications to minimize the environmental impact caused by the use of marketed products
Establishing goals and targets based on performance KPIs

	2020	2021	2022	2023
NOx (ton)	1,384	1,349	1,539	918
SO₂(ton)	1,113	922	1,454	1,394
particulate (ton)	182	183	70	13

Galp’s priority is to reduce the amount of waste and its harmfulness at the source of production, promoting the recoverable proportion increase.

We seek to maximize the reuse, and the recycling or recovery of materials. Disposal is always the last management option and when it happens it is first treated to ensure the waste is sent to the appropriate destination. These concerns are carefully assessed in the various phases of the plant life cycle - design, operation, and decommissioning.

Waste management in operations is supported by risk analysis and assessment, which takes into account not only the harmfulness of the products/waste from operations, but also the capability and suitability of infrastructures and equipment to process and store them. In this way, we minimize the risks to ecosystems and human health.

We establish operational priorities for waste management in accordance with the following hierarchical levels:

Prevention and production reduction - In the design of facilities and improved operations management
Reuse - Of products, prolonging their useful life
Recycling - Recovering materials/components
Recovery - In energy terms
Treatment and disposal.

	2020	2021	2022	2023
waste produced (ton)	27,894	20,355	22,167	29,240
waste recovered/recycled (%)	56	60	62	53

We act in several aspects to minimize the instances of containment losses. We promote the monitoring of all primary containment losses, regardless of the volume released or the affected environment. We seek to promote the dissemination of the lessons learned from the investigation of each event, of its causes and effects. In addition to its monitoring, this information is reported in the Scorecards of the business units, which are regularly monitored by the top management.

	2020	2021	2022	2023
containment losses that impacted the environment (>150 l) (no.)	7	11	7	5
total volume that impacted the environment (>150 l) (m³)	302	44	64	4.8

We implement measures to prevent and mitigate spills, promoting the quality of the environment and the species and habitats that depend on it. We strive to improve the understanding of the environment in which our activities are developed, at the level of:

Local hydrogeology
Surface and groundwater resources quality and characteristics
Soil type and characteristics
Bioclimatic conditions
Ecological vulnerability

Recognising the importance that our operations have on soil conservation in the areas where we operate, we have developed action plans and we are proactive.

We have internal standards and procedures for the sustainable management of soil and water resources. We have established methodologies, and we have aligned our activities with internationally accepted good practices and the expectations of the competent authorities and other stakeholders. From an integrated perspective of the life-cycle of our facilities, the protection of soil and water resources is ensured through:

proper management of contaminants, waste and effluents;
incident prevention;
preparing responses to emergency and crisis situations.

In principle, we always have ready a responsible action in case of any threat of environmental damage.

We apply procedures to investigate and evaluate the contamination whenever loss of mechanical integrity and consequent loss of containment is suspected.

We believe in sustained prevention by assessing risks and impacts throughout the life-cycle of projects. We strive to improve understanding of the environment in which our activities take place, at different levels:

ecological vulnerability;
local hydrogeology;
quality and characteristics of water resources;
type and characteristics of soils and bioclimatic conditions.

This knowledge is relevant for preventing and minimising the impacts of our activities, particularly at the planning and emergency response levels.

We prepare emergency response plans specific to our operations, which are periodically reviewed and tested.

Emergency plans cover all phases of emergency response, from emergency identification to closure. They include all scenarios that could result in a serious event, and they define the resources, roles, responsibilities, competencies and experiences required for each situation.

Communication channels with internal and external stakeholders are also identified, in order to minimise adverse effects on human life, the environment and assets.

We establish provisions for environmental liabilities every year. These are generally established in order to provide resources for soil and groundwater decontamination processes, as well as for block abandonment projects arising from the Upstream activity.

Provisions (k€)	2020	2021	2022	2023
Environment	145	216	314	380
Abandonment of Upstream blocks	368	429	401	389

Learn more about our environmental performance.

Circular economy

Galp is focused on making materials last longer, by using resources responsibly and incorporating circular principles from design to disposal. We aim to collaborate with partners in order to share experiences and best practices and create opportunities aligned with this objective. We strategically reconsider the traditional business model through a circular lens, by exploring solutions through Innovation initiatives.

Advanced Biofuels

Sines’s transformation, from a grey refinery to a green energy hub, will enable Galp to develop efficiency projects that incorporate reused materials to produce low-carbon products.

In 2023, Galp and Mitsui partnered to set up a 75/25 joint venture and invest in a large-scale 270 ktpa unit adjacent to the Sines refinery for producing and marketing advanced biofuels. The unit will use waste residues to produce Hydrotreated Vegetable Oil (HVO) and Sustainable Aviation Fuel (SAF), thereby reducing the environmental footprint compared to its fossil fuels alternatives.

We are maintaining operations at Enerfuel, an industrial facility in Sines, producing Fatty Acid Methyl Ester (FAME) biodiesel, exclusively from animal fats and used cooking oils. In our Sines refinery, we supply Fluid Catalytic Cracking (FCC) to St. Gobain for bitumen production . To further enhance our contribution to circularity, we are exploring the classification of some of our waste as input for other industries.

ISEL, Galp, and Saint-Gobain create more sustainable mortars for construction.

The ECO-Zement research project, a collaboration between ISEL, Galp, and Saint-Gobain, aims to create more sustainable mortars for construction by incorporating refining by-products. The innovative circular process enhances environmental and performance aspects. Saint-Gobain will use a subproduct from Galp's Sines Refinery to produce eco-friendly mortar, reducing the environmental footprint and conserving natural resources. The project, initiated in 2010, involves academia, industry, and construction material manufacturers in a Circular Economy concept. It resulted in reclassifying the refinery by-product as a subproduct, reducing waste and costs, and generated valuable knowledge, innovation, and funding opportunities for I&D+i activities in Portugal.

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New Businesses – Lithium value chain

Galp is co-developing a lithium-processing facility in Setubal (Aurora). For this project, the creation of a network of offtakers for the by-products of lithium conversion it is being planned. This will promote a circular economy and ensuring that the impact from this activity is mitigated.

Renewables - Solar Photovoltaic Plants

Our innovation team conducted an in-depth assessment of CERFO (Centro Europeo de Reciclaje Fotovoltaico), a startup in Aragón that is establishing a PV module recycling facility in Spain. This involved analysing the PV recycling market, the relevant regulations, and CERFO's business and technology. With the support of a specialized consulting firm, we explored end-of-life routes for PV modules in Europe and benchmarked these against industry standards.

Commercial – Convenience

Together with our suppliers, we are implementing practices to improve circularity in our convenience stores. This includes reducing plastic packaging materials and replacing disposable packs with reusable ones for transporting bottles, which can then be returned for reuse. We also convert the biowaste from coffee as a by-product, by providing our clients the opportunity to take the coffee grounds and use them as biofertilizer.