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

Last year Galp got in into 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 capability of 270,000 metric tons per year.

It will change waste materials, such as used cooking oils, into sustainable biodiesel and biojet fuel, likewise known as sustainable aviation 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 three reactors to process biofuels, which will allow the HVO system to “produce SAF and biodiesel in 2026 … positioning Galp at the leading edge of developing low-carbon options necessary for the energy transition”.

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