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

Last year Galp participated in 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 annually.

It will change waste materials, such as utilized cooking oils, into sustainable biodiesel and biojet fuel, likewise known as sustainable air travel fuel (SAF), utilizing 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 … positioning Galp at the leading edge of developing low-carbon services necessary for the energy transition”.

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