Mitsui and Galp, Portugal's largest energy company, have agreed to collaborate on promoting the production of Hydrotreated Vegetable Oil (HVO) and Sustainable Aviation Fuel (SAF).
The agreement establishes a joint venture company for HVO and SAF production. Galp will hold a majority stake (75%), while Mitsui will hold a 25% stake.
HVO, derived from used cooking oil and animal and vegetable fats and others, can be a biofuel alternative to diesel for internal combustion engine vehicles like buses and trucks. Similarly, SAF offers a biofuel alternative to jet fuel for airplanes.
Demand for both fuels is expected to rise in the future, particularly in Europe, which actively promotes biofuel policies due to their eco-friendly nature and low greenhouse gas emissions.
Beyond investment in manufacturing, Mitsui will play a role in securing raw materials, primarily from Asia, and establishing sales channels, fostering the business across the entire value chain.
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