SINES ADVANCED BIOFUELS

Promoter – Financial Intermediary

GALP ENERGIA SGPS SA

Location

• Portugal

Description

The project concerns the construction and operation of a 270 ktpa second generation biofuels production facility in Sines, Portugal. The facility will be based on Hydrogenated Vegetable Oil (HVO) technology. It will process a wide variety of fatty residues, such as used cooking oils and other industry residues, to produce HVO biodiesel for road transport and SAF (Sustainable Aviation Fuel) for aviation.

Objectives

The project supports the broader EU decarbonisation policy objectives, including the achievement of climate neutrality by 2050. It can contribute to the EU Green Deal and the FIT for 55 package, for example the reduction of greenhouse gas (GHG) emissions of 55% by 2030. The biofuel plant specifically targets the replacement of fossil-based fuels to decarbonise the transport sector. It thereby supports the achievement of the EU targets set by the REDII directive. Notably, the plant will process feedstock included in the Annex IX part A and B of the directive. The project contributes to the RePowerEU objectives by enhancing the EU production capacity of clean alternatives to fossil fuels. This leads to the reduction of the EU's dependency on fuel imports and thereby supports energy security. Moreover, the project is particularly relevant for the ReFuelEU Aviation initiative, as it will help to ensure the supply of SAF for achieving the blending targets.

Sector(s)

• Energy - Electricity, gas, steam and air conditioning supply

Proposed EIB finance (Approximate amount)

EUR 250 million

Total cost (Approximate amount)

EUR 449 million

Environmental aspects

The project will be appraised and monitored in line with the Bank's policies, including the Environmental and Social Sustainability Framework. Compliance with the EIA Directive 2011/92/EU as amended by Directive 2014/52/EU and with the Industrial Emissions Directive 2010/75/EU will be verified during the appraisal.

Procurement

The Promoter has been assessed by the EIB as being a private company not being subject to EU rules on public procurement or concessions. However, if at the project appraisal, the EIB were to conclude that the Promoter is subject to the EU public procurement legislation then the Bank would duly inform the Commission Services and would require the Promoter to apply those rules.

Status

Signed - 27/12/2024