LISBON, Dec 19 (Reuters) - Portugal's Galp Energia expects to start producing biodiesel and biojet fuel from waste in an industrial-scale system it is constructing at its Sines refinery in 2026, the business, which is primarily an oil manufacturer and refiner, stated on Thursday.

Last year Galp participated in 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 capacity of 270,000 metric heaps each year.

It will change waste products, such as utilized cooking oils, into sustainable biodiesel and biojet fuel, also referred to as sustainable aviation fuel (SAF), utilizing green hydrogen produced by an electrolyser powered by wind or solar power.

Galp said in a declaration it got on Wednesday the 3 reactors to process biofuels, which will enable the HVO system to "produce SAF and biodiesel in 2026 ... positioning Galp at the leading edge of establishing low-carbon services vital for the energy shift".

Galp is likewise 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-