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Portuguese energy supplier Galp set out its decarbonisation strategy at its Atlantic Meeting in Lisbon today (12 May), but the company, which no longer supplies high sulphur fuel oil (HSFO), is seeing demand for the product and will decide whether to restart supply over the course of the year, André Cardoso, Head of B2B at Galp, tells Bunkerspot.

At the meeting, Galp executives told delegates that the company anticipates a significant decrease in oil demand across Europe out to 2030, resulting in a ‘wave of refinery rationalisation.’

The company sees demand for green and blue hydrogen gaining momentum ‘with viable options emerging.’ As such, it sees hydrogen as ‘the basis for the energy matrix.’

Galp is aiming to produce 100 MW of hydrogen per year by 2025, rising to 1.5 GW over the next decade.

The company also revealed that it is assessing entry into the Li-ion battery value chain.

As previously reported, Galp is to supply biofuel by September this year. The company also has LNG storage at Sines and supplies to vessels via truck delivery.

As is the case with many energy and maritime stakeholders, Galp says it is keen to forge partnerships to drive forward the energy transition and at today’s event it said it was interested in taking part in accelerator programmes and incubators, as well as in the venture capital space.

Galp’s refinery at Sines currently produces very low sulphur fuel oil (VLSFO), marine gasoil and marine diesel oil and its products are supplied across Portuguese ports – ex-pipe, by truck and via its three barges. The company also supplies gasoil only at Spanish ports.

Galp’s bunker fuel offering meets ISO 8217:2017 specifications.

Susana Broco, Senior Bunker Trader at Galp said that the company is anticipating 12% annual growth in marine fuel supply. In 2021, 59% of its total bunker volumes were supplied at Sines, where the first bunker-only supply was made in March 2021. Lisbon accounts for 24% of Galp’s bunker volumes, followed by Setubal at 14%.

Galp reconfigured the production slate at its Sines refinery to produce VLSFO in compliance with the IMO 2020 sulphur mandate and production of HSFO at the facility was halted. However, speaking to Bunkerspot on the side lines of the Atlantic meeting, Cardoso said that a possible restart of HSFO was under constant re-evaluation as the company is seeing increased demand for this product. He emphasised that producing at HSFO and VLSFO at the refinery would be a production challenge but, should the company decided to restart HSFO supply it would produce it, rather than bring in supply from other sources.

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