Mitsui takes 25% stake in Galp renewable diesel and SAF venture
Mitsui agreed to take a 25% stake in a Galp-operated renewable diesel and sustainable aviation fuel venture at Portugal's Sines Refinery, with HVO production starting by end of 2025. The deal reflects rising biofuel demand under European policy, signalling export and feedstock opportunities for Indian and Asian suppliers.
Mitsui & Co. agreed to invest in a renewable diesel (hydrotreated vegetable oil, HVO) and sustainable aviation fuel (SAF) production venture operated by Galp, Portugal's biggest energy company. Pending regulatory clearance, the joint venture will be 75% owned by Galp and 25% by Mitsui. Facilities at the Sines Refinery, operating since 1978, will switch between HVO and SAF production. HVO production is set to begin by the end of 2025, with commercial operation expected in 2026, driven by EU biofuel-promoting policies.
The venture affects the transport and aviation fuel sectors and feedstock suppliers, with Mitsui overseeing the value chain including feedstock procurement primarily from Asia and product sales. HVO is derived from waste residues like used cooking oil and animal fats as an eco-friendly diesel alternative for buses and trucks, while SAF serves aircraft. Both offer reduced greenhouse gas emissions, with demand expected to rise especially in Europe. Mitsui aims to build a next-generation fuels portfolio spanning diesel, the largest transport fuel segment, and aviation fuel.
Asian feedstock suppliers and fuel-sector participants should monitor the regulatory clearance for the joint venture and the HVO production start by end of 2025 ahead of commercial operation in 2026. Mitsui has identified the Global Energy Transition as a strategic initiative in its Medium-term Management Plan for 2026. Companies in waste-residue feedstock supply and sustainable fuel offtake can watch how European biofuel policy and the venture's switchable HVO/SAF facilities shape long-term demand growth.
Key figure — Ownership split: Galp 75%, Mitsui 25%
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