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 building at its Sines refinery in 2026, the business, which is primarily an oil manufacturer and refiner, said on Thursday.

Last year Galp entered 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 lots per year.

It will transform waste products, such as used cooking oils, into and biojet fuel, likewise referred to as sustainable air travel fuel (SAF), utilizing green hydrogen produced by an electrolyser powered by wind or solar power.

Galp stated in a declaration it got on Wednesday the three reactors to process biofuels, which will enable the HVO system to “produce SAF and biodiesel in 2026 … positioning Galp at the forefront of establishing low-carbon solutions vital for the energy shift”.

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