LISBON, Dec 19 (Reuters) - Portugal’s Galp Energia expects to start 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 mostly an oil producer and refiner, said on Thursday.

In 2015 Galp got in into a 75%-25% joint venture with Japan’s Mitsui to invest 400 million euros ($415 million) in the Hydrogenated Vegetable Oil (HVO) plant, which will have a production capability of 270,000 metric loads per year.

It will transform waste materials, such as utilized cooking oils, into sustainable biodiesel and biojet fuel, likewise referred to as sustainable aviation fuel (SAF), using green hydrogen produced by an electrolyser powered by wind or solar energy.

Galp said in a declaration it received on Wednesday the three reactors to process biofuels, which will enable the HVO system to “produce SAF and biodiesel in 2026 ... putting Galp at the forefront of developing low-carbon options vital for the energy transition”.

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