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 developing at its Sines refinery in 2026, the business, which is primarily an oil producer and refiner, stated on Thursday.

Last year Galp got in into a 75%-25% joint venture with Japan's Mitsui to invest 400 million euros ($415 million) in the Hydrogenated Grease (HVO) plant, which will have a production capability of 270,000 metric heaps annually.

It will change waste materials, such as used cooking oils, into sustainable biodiesel and biojet fuel, likewise called sustainable aviation fuel (SAF), hydrogen produced by an electrolyser powered by wind or solar energy.

Galp stated in a declaration it got on Wednesday the 3 reactors to process biofuels, which will permit the HVO system to "produce SAF and biodiesel in 2026 ... putting Galp at the forefront of developing low-carbon options essential for the energy transition".

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