Mitsui & Co., Ltd. (Mitsui) has agreed to invest in a renewable diesel (hydrotreated vegetable oil/HVO) and sustainable aviation fuel (SAF) production business operated by Galp SGPS, S.A. (Galp), Portugal's biggest energy company. A joint venture company will be established once necessary authorities' clearances are obtained. Galp will own 75% of its shares and Mitsui 25%.

Produced from waste residues feedstock such as used cooking oil and animal fats, HVO is used as an alternative diesel fuel for vehicles with internal combustion engines, such as buses and trucks. SAF is an alternative jet fuel for use in aircrafts. Both are environmental-friendly fuels with lower greenhouse gas emissions. Demand for HVO and SAF is expected to be growing, especially in Europe where policies to encourage the use of biofuels are introduced.

As the only oil refiner in Portugal, Galp has been operating the Sines Refinery since 1978. The Lisbon-based company has been stepping up its investment in the energy transition field and pursuing fuel conversion initiatives. This project will involve the construction of facilities within the Sines Refinery, which are capable of being switched between HVO and SAF production modes. With the first HVO production in the end of 2025, the commercial operation date of the project is expected in 2026, and it is anticipated that the facilities will also be used to produce SAF, demand for which is expected to increase over the long period of time. In addition to its investment in the production business, Mitsui will also take responsibility for the overall value chain, including the procurement of feedstocks, primarily from Asia, and the sales of the products.

Mitsui has identified Global Energy Transition as a key strategic initiative in its Medium-term Management Plan 2026. Through its participation in this HVO/SAF business, Mitsui aims to build and expand its next generation fuel business portfolio in diesel fuel, which accounts for the largest market in the area of transportation fuels, as well as in aviation fuel. Mitsui will continue tackling climate change, urgent and complex global challenges, through cross-industry initiatives.

About Mitsui

Mitsui & Co., Ltd. is a global trading and investment company with a diversified business portfolio that spans approximately 63 countries in Asia, Europe, North, Central & South America, The Middle East, Africa and Oceania. Mitsui has built a strong and diverse core business portfolio covering the Mineral and Metal Resources, Energy, Machinery and Infrastructure, and Chemicals industries. Leveraging its strengths, Mitsui has further diversified beyond its core profit pillars to create multifaceted value in new areas, including innovative Energy Solutions, Healthcare & Nutrition and through a strategic focus on high-growth Asian markets. This strategy aims to derive growth opportunities by harnessing some of the world's main mega-trends: sustainability, health & wellness, digitalization, and the growing power of the consumer.

About Galp

Galp is an energy company committed to the development of efficient and sustainable solutions in its operations and in the integrated offers to its customers. We create simple, flexible and competitive solutions for the energy or mobility needs of large industries, as well as small and medium-sized businesses and individual consumers. Our offer includes various types of energy – from electricity produced from renewable sources to natural gas and liquid fuels. As a producer, we extract oil and natural gas from reservoirs located miles below sea level, while also being one of the largest Iberian producers of solar-based electricity. We contribute to the economic development of the 10 countries where we operate, and to the social progress of the communities that welcome us. We are, therefore, leaders in our sector in the world's main sustainability indices. Galp has 6,360 employees. Galp is already one of Iberia’s leading solar PV producers, with 1.4 GW in operation, and plans to expand its renewable energies capacity to 4 GW by 2025. The company has committed to directing more than half of its investments in the coming years to renewables and new low-carbon energies and businesses.