Low Carbon Initiatives

CO₂ management in the pre-salt

Since the beginning of operations at Block BM-S-11, located in the ultra-deep waters of the Brazilian pre-salt (Santos basin), the partners took the initiative to separate and inject into the reservoir the CO₂ from the natural gas produced.

This was a win-win solution, leading to a reduction in the carbon footprint of our operation and more consistent reservoir pressure. Using a selective permeation method at the production units, we separate the CO₂ from natural gas, and inject it back into the reservoir using the WAG method.

A more efficient refining system

Galp remains focused on optimising its refining system processes and maximising energy efficiency. We have several ongoing programs and projects to optimise the use of resources in our operations, both in the Sines and Matosinhos refineries, with a view to achieving continuous improvements, minimising process variations and reductions in waste and effluents.

In 2019, Galp achieved the CO₂/CWT targets defined (32.7 and 29.3 for Sines and Matosinhos Refinery, respectively). Even so, we continue to strive to improve our performance through the implementation of relevant refining activity conversion and energy efficiency improvement projects, with a total investment of c.€42.6m.

We aim to be a reference when it comes to the carbon intensity of our refining activity, for this we will invest c. € 80m by 2025 in eco-efficiency projects that will avoid the emission of more than 170 kton of CO₂e per year, compared to the current activity.

We monitor the energy efficiency of our activities through the Solomon Energy Intensity Index. Since 2015, the Matosinhos refinery has been ranked in the upper quartile of the Solomon Reference. We also assume the objective of putting both refineries in this quartile by 2021, reinforcing Galp's position as an efficient refining industry. We establish energy efficiency targets, through the Energy Efficiency Index, to promote the continuous improvement of our operations aligned with the activity requirements:

The performance in 2019 occurred due to scheduled stoppages for maintenance and process improvement at our refineries.

Production of biofuels

We are present in the development of biofuels, which represents a proven solution with immediate effects, and which can be incorporated into existing liquid fuels. Our industrial unit in Sines, Enerfuel, is focused on the production of second-generation biofuels, which we want to develop in order to leverage the production of advanced biofuels.

In 2019, Enerfuel produced 26,601 m³ of biodiesel, which together with the 283,469 m³ of biofuels incorporated in Portugal and Spain, avoided the emission of 352,532 tonCO₂e, when compared to a fuel of exclusively fossil origin.

We have taken an active role in the technological development of the biofuels segment in Portugal, participating in several projects focused on the co-processing of used cooking oil, the generation of ethanol and bio-oil through forest biomass and the production of synthetic crude oil and biomethane through urban solid waste and waste derived fuels.

Investment strategy aligned with the energy transition

Galp is developing a resilient portfolio, with over 40% of its planned investments to be allocated to projects that promote the energy transition. The Company will foster economically and environmentally sustainable solutions, reinforcing its investment strategy in renewable energies and in new business models (10% to 15% of future investments), as well as increasing the weight of  natural gas in its portfolio.

Building a strong renewable power generation position in Iberia

Galp continued to strengthen its position in renewable power generation by acquiring solar PV licences both in Portugal and Spain. In January 2020, Galp agreed to acquire solar PV projects in Spain, comprising a total generation capacity of c.2.9 GW by 2023, of which over 900 MW are already operational.

Strengthening the power offer through renewable power purchase agreements (PPA)

Galp has strengthened its commercial portfolio to provide renewable power to its customers by establishing two PPAs in Spain, with X-Elio and Grenergy Renovables. Galp’s total renewable power provided through PPAs now amounts to over 650 GWh per annum, in line with the strategy of securing a balanced and competitive long-term sourcing portfolio for its power activities.

New realities, new services and products

Galp has developed an electric transportation strategy focused on an integrated commercial offering, through the inclusion of electric transportation solutions in our commercial offer, and the implementation of a network of fast-charging points at our service stations in Portugal. We had 24 fast charging stations and 32 normal charging stations by the end of 2019.

We have continued to seek to meet our customers’ expectations, which is why since 2016 Galp has provided Evologic diesel and gasoline, a new fuel range with additives allowing greater savings, extended engine life and greater efficiency.

Galp Energy Solutions

Through our energy solutions segment, Galp offers its clients a wide range of services specifically designed to meet the needs of the industry, buildings and transport segments in the national market. Through energy performance contracts, implemented using the ESCO (Energy Service Companies) model, and energy implementation projects, Galp supports its clients in the reduction of their energy consumption and costs and avoiding greenhouse gas emissions.

In 2019, we added new projects to our portfolio, using different business models, with a focus on optimisation projects for the premise's energy consumption profile. Alongside its clients, in 2019, Galp developed energy efficiency solutions that avoided emissions of 345 tonCO₂e/year.

Galp 21

Galp 21 is a university cooperation program whose purpose is the annual development of 21 studies and works carried out by students or master’s students in Portugal’s top three universities - Universidade de Aveiro (University of Aveiro), Instituto Superior Técnico (Higher Technical Institute) and the Faculdade de Engenharia of the Universidade do Porto (Engineering School of the University of Porto). Its aim is to identify and develop rational energy systems and behaviors that may be applied to the industry and buildings.

The program is based on a shared mentoring system between Galp (the client manager), the client company and the university concerned. Galp follows up the studies’ accomplishment, with the objective of contributing to its materialization into specific energy efficiency projects in its clients.

Since its twelve editions, Galp has already supported 247 grantees. In 2019, the implemented measures allowed reductions of almost 7% in primary energy consumption and 6% in CO₂ emissions.

Consult here the main figures of the programme in 2019.