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06 October 2023

Daily Newsletter

06 October 2023

Technip Energies to build biofuels and green hydrogen units in Portugal

The projects will be developed for PV solar energy producer Galp’s Sines refinery.

October 06 2023

Photovoltaic (PV) solar energy producer Galp has granted engineering, procurement services and construction management (EPsCm) contracts to France-based Technip Energies.

The EPsCm contracts are for an advanced biofuels and a green hydrogen unit in Portugal.

The projects, which will be developed for Galp’s Sines refinery, fall under the company's initiative to minimise the refinery’s and its products’ carbon footprint.

Galp and Mitsui have formed a joint venture to support the advanced biofuels unit. Galp will control 75% of the plant, while Mitsui will possess 25%.

This unit will have a 270 kilotonnes per annum (ktpa) capacity. It will generate renewable diesel and sustainable aviation fuel from bio-feedstock and waste residues, allowing Galp to prevent 800ktpa of greenhouse gas emissions.

Technip Energies will execute the EPsCm project of the biofuel unit in collaboration with Portugal-based engineering company Technoedif Engenharia.

The green hydrogen unit, which consists of a 100MW electrolysis plant, will generate 15ktpa of sustainable hydrogen.

It will use proton exchange membrane electrolysers provided by renewable energy equipment manufacturer Plug Power.

This unit will replace 20% of Sines refinery’s present grey hydrogen usage, resulting in a cut in greenhouse gas emissions of 110ktpa.

Both units’ overall investment is valued at €650m ($689m).

Technip Energies COO Marco Villa said: “Technip Energies, which has been supporting Galp strategy since the early phases of those two projects, is now delighted to be selected as a partner for the execution phase of both. This investment is another example of how Technip Energies enables the decarbonisation of the energy industry through collaboration, innovation and technology integration.”

Investment in the infrastructure and energy & utilities sectors remains a major driver of overall construction growth

Infrastructure and Energy & Utilities sectors expanded in 2020 despite COVID-19 disruptions, which reflected the efforts by governments and public institutions to accelerate investment to stimulate activity. The recovery from the pandemic and the easing of restrictions allowed the resumption of work on major projects in 2021, and growth is set to remain strong in the coming years, particularly given major investment programs in the US and China.

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