Sines Refinery Transformation from Grey to Green Hydrogen – Phase II: 200 MW by 2028

Introduction

The Grey2Green-II project will be developed by Petrogal S.A., part of the Galp Energia group, one of the leading energy companies in Portugal and owner of the Sines refinery, in the Sines Industrial and Logistics Zone (ZILS), where the 200 MW electrolyser project will be located.

Energy Supply

By utilising renewable electricity from a variety of sources, the Grey2Green-II project will produce RFNBO Hydrogen. The project’s electricity needs will be mostly fulfilled by a combination of several solar and wind PPAs (Power Purchase Agreements), with the remaining energy obtained from the power grid, which has a high renewable share from the Iberian electricity market.

This diverse and solid energy supply mix is critical to ensure the safe and reliable operation of Galp’s Sines refinery, which will be the off-taker of the project.

Sustainable Operations

The Grey2Green-II project will significantly enhance the sustainable operations of its off-taker, the Sines Refinery. The RFNBO hydrogen produced by the project will:

1. Partially replace the grey hydrogen that is currently produced in the Steam Methane Reformer units (SMR) at the Sines Refinery.
2. Feed the refining processes (e.g., hydrocracking and hydrotreating units) to produce several fuels used for mobility such as:
   • Kerosene
   • Diesel
   • Gasoline
   • Liquefied petroleum gas (LPG)
   • Naphtha

Hydrogen Delivery

The hydrogen produced by the Grey2Green-II plant will be delivered directly to the refinery via an internal pipeline connection.

Once operational, the Grey2Green-II plant will supply more than 30% of the total hydrogen consumed in the Sines refinery. This will result in GHG emission avoidance of over 1.47 million tons of carbon dioxide (CO2) in its first 10 years of operation.