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

In 2015 Galp entered into a 75%-25% with Japan’s Mitsui to invest 400 million euros ($415 million) in the Hydrogenated Vegetable Oil (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 eco-friendly biodiesel and biojet fuel, likewise called sustainable air travel fuel (SAF), using green hydrogen produced by an electrolyser powered by wind or solar power.

Galp said in a declaration it received on Wednesday the 3 reactors to process biofuels, which will permit the HVO unit to “produce SAF and biodiesel in 2026 ... placing Galp at the leading edge of establishing low-carbon services important 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