Mitsui & Co., Ltd. (“Mitsui,” headquartered in Tokyo, led by President and CEO Kenichi Hori) has agreed to invest in a renewable diesel (hydrotreated vegetable oil/HVO) and sustainable aviation fuel (SAF) production venture operated by Galp SGPS, S.A. (“Galp”), Portugal’s biggest energy company. A joint venture will be established pending clearance from the necessary regulatory authorities, with Galp holding a 75% ownership stake and Mitsui holding the remaining 25%.
HVO is derived from waste residues like used cooking oil and animal fats and serves as an eco-friendly alternative diesel fuel for vehicles equipped with internal combustion engines, such as buses and trucks. SAF, on the other hand, is an alternative aviation fuel designed for aircraft use. Both HVO and SAF are environmentally friendly fuels known for their reduced greenhouse gas emissions. The demand for these fuels is expected to rise, especially in Europe, where biofuel-promoting policies are being introduced.
Galp, as Portugal’s sole oil refiner, has been operating the Sines Refinery since 1978. The Lisbon-based company has been intensifying its investments in the energy transition sector and pursuing initiatives for fuel conversion. This project involves the construction of versatile facilities within the Sines Refinery, capable of switching between HVO and SAF production modes. HVO production is set to begin by the end of 2025, with the project’s commercial operation expected in 2026. These facilities are also expected to contribute to SAF production, which is projected to witness long-term growth in demand. In addition to its investment in production, Mitsui will oversee the entire value chain, including feedstock procurement, primarily from Asia, and product sales.
Mitsui has identified the Global Energy Transition as a crucial strategic initiative in its Medium-term Management Plan for 2026. By participating in this HVO/SAF venture, Mitsui aims to establish and expand its portfolio in next-generation fuels, encompassing diesel fuel (the largest market segment in transportation fuels) and aviation fuel. Mitsui will continue to address climate change, which is one of the urgent and complex global challenges, through collaborative efforts spanning multiple industries.
