LISBON, Dec 19 (Reuters) - Portugal’s Galp Energia expects to begin producing biodiesel and biojet fuel from waste in an industrial-scale unit it is developing at its Sines refinery in 2026, the company, which is primarily an oil manufacturer and refiner, stated on Thursday.

In 2015 in a 75%-25% joint endeavor with Japan’s Mitsui to invest 400 million euros ($415 million) in the Hydrogenated Grease (HVO) plant, which will have a production capacity of 270,000 metric lots annually.

It will change waste materials, such as utilized cooking oils, into renewable biodiesel and biojet fuel, also called sustainable air travel fuel (SAF), using green hydrogen produced by an electrolyser powered by wind or solar power.

Galp stated in a statement it received on Wednesday the 3 reactors to process biofuels, which will allow the HVO unit to “produce SAF and biodiesel in 2026 ... placing Galp at the leading edge of developing low-carbon options vital for the energy transition”.

Galp is also investing 250 million euros in a 100 megawatt (MW) electrolyser system to produce green hydrogen to power the refinery in Sines. ($1 = 0.9637 euros) (Reporting by Sergio Goncalves