Portugal: Mitsui & Co., Ltd., a prominent Tokyo-based conglomerate, has recently entered into an agreement to invest in the production of renewable diesel (hydrotreated vegetable oil/HVO) and sustainable aviation fuel (SAF) in partnership with Galp SGPS, S.A., Portugal's largest energy company. Pending the requisite regulatory approvals, a joint venture entity will be established, with Galp holding the majority share of 75%, while Mitsui will own the remaining 25%.

HVO, a green fuel derived from waste residue feedstock like used cooking oil and animal fats, serves as an eco-friendly substitute for traditional diesel fuel in vehicles featuring internal combustion engines, including buses and trucks. SAF, on the other hand, offers an eco-conscious alternative to conventional aviation fuel for use in aircraft. Both these fuels are renowned for their capacity to reduce greenhouse gas emissions. The demand for HVO and SAF is expected to surge, particularly in Europe, where initiatives promoting the use of biofuels have gained traction.

Galp, operating as the sole oil refiner in Portugal since 1978, is headquartered in Lisbon and has been intensifying its investments in the realm of energy transition, focusing on fuel conversion initiatives. This collaborative endeavor will involve the construction of adaptable facilities within the Sines Refinery, capable of transitioning between HVO and SAF production modes. The initial production of HVO is slated to commence by the end of 2025, with the commercial launch of the project anticipated in 2026. Moreover, these facilities are expected to cater to the rising demand for SAF over an extended period. In addition to its financial investment in the production venture, Mitsui will take on the responsibility for overseeing the entire value chain, encompassing the sourcing of feedstocks, primarily from Asia, as well as the marketing and sales of the resultant products.

Mitsui has prominently outlined the Global Energy Transition as a critical component of its Medium-term Management Plan 2026. By participating in this HVO/SAF enterprise, Mitsui aims to cultivate and broaden its portfolio in the next-generation fuel sector, particularly focusing on diesel fuel, which constitutes the largest market share in the transportation fuel industry, alongside aviation fuel. Mitsui's commitment to addressing climate change, one of the world's most pressing and intricate global challenges, is underscored by its engagement in cross-industry initiatives.

In conclusion, Mitsui's strategic investment in the renewable diesel and sustainable aviation fuel production venture with Galp marks a significant step towards a greener and more sustainable future in the energy sector. This move aligns with Mitsui's forward-looking approach and commitment to combating climate change while seizing opportunities in the evolving energy landscape.