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

In 2015 Galp participated in a 75%-25% joint venture with Japan’s Mitsui to invest 400 million euros ($415 million) in the Hydrogenated Grease (HVO) plant, which will have a production capacity of 270,000 metric tons each year.

It will change waste materials, such as utilized cooking oils, into eco-friendly biodiesel and biojet fuel, likewise referred to as sustainable air travel fuel (SAF), using 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 ... putting Galp at the forefront of establishing low-carbon options important for the energy transition”.

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