Galp Refinery Advances 100 MW Green Hydrogen

Plug Power completes large electrolyser at Sines, targeting 110,000 tonnes in annual CO₂ cuts under EU climate rules  

2 Mar 2026

Plug Power has completed installation of a 100-megawatt electrolyser system at Galp’s Sines refinery in Portugal, marking one of the largest renewable hydrogen projects integrated into a European refining complex.

The system, expected to be commissioned in mid-2026, is designed to produce up to 15,000 tonnes of green hydrogen a year. That would replace about 20 per cent of the refinery’s conventional hydrogen consumption and could reduce carbon emissions by an estimated 110,000 tonnes annually.

The project comes as European refiners adjust to tighter climate policies under the EU’s Fit for 55 package and the bloc’s Emissions Trading System, which places a price on carbon emissions. By producing hydrogen on site using renewable electricity, Galp aims to cut its exposure to carbon costs and align with stricter clean fuel requirements.

Hydrogen is widely used in refining to remove sulphur and process crude oil. Most supply today is produced from natural gas, generating significant emissions. Replacing part of that demand with renewable hydrogen is seen as a practical step towards lowering the sector’s carbon footprint without reducing output.

For Plug Power, the Sines installation represents a commercial-scale deployment of its electrolyser technology within existing industrial infrastructure. Large projects of this kind are being closely watched as policymakers promote hydrogen as a pillar of Europe’s decarbonisation strategy.

Progress across the region has been uneven. While governments have set ambitious production and consumption targets, several proposed projects have faced delays linked to financing challenges and uncertain demand. High-capacity installations such as Sines provide evidence that some schemes are moving from planning to construction.

However, the long-term economics remain sensitive to electricity prices. Green hydrogen relies on competitively priced renewable power, and sustained access to low-cost supply will be critical to returns on investment.

Whether similar refinery-based projects scale up across Spain, Germany and the Netherlands will depend largely on those cost dynamics and continued policy support.