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LISBON, Dec 19 (Reuters) - Portugal's Galp Energia expects to begin 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 and refiner, stated on Thursday.

In 2015 Galp entered into a 75%-25% joint endeavor with Japan's Mitsui to invest 400 million euros ($415 million) in the Hydrogenated Vegetable Oil (HVO) plant, which will have a production capability of 270,000 metric tons each year.

It will transform waste materials, such as used cooking oils, into eco-friendly biodiesel and biojet fuel, likewise referred to as sustainable aviation fuel (SAF), utilizing green hydrogen produced by an electrolyser powered by wind or solar energy.

Galp stated in a declaration it got on Wednesday the three reactors to process biofuels, which will permit the HVO system to "produce SAF and biodiesel in 2026 ... putting Galp at the leading edge of establishing low-carbon services necessary for the energy shift".

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