LISBON, Dec 19 (Reuters) 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 company, which is mostly an oil producer and refiner, said 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 used cooking oils, into renewable biodiesel and biojet fuel, also understood as sustainable air travel fuel (SAF), using green hydrogen produced by an electrolyser powered by wind or solar power.

Galp said in a declaration it received on Wednesday the 3 reactors to process biofuels, which will permit the HVO unit to "produce SAF and biodiesel in 2026 ... placing Galp at the forefront of establishing low-carbon solutions essential for the energy shift".

Galp is also 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-