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

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

It will transform waste materials, such as utilized cooking oils, into sustainable biodiesel and biojet fuel, likewise understood as sustainable air travel fuel (SAF), using green hydrogen produced by an electrolyser powered by wind or solar energy.

Galp stated in a declaration it received on Wednesday the 3 reactors to process biofuels, which will enable the HVO unit to "produce SAF and biodiesel in 2026 ... placing Galp at the leading edge of establishing low-carbon services necessary for the energy transition".

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