(Slingerlands, USA) – US-based Plug Power Inc. has delivered the first 10-megawatt PEM electrolyzer to Galp Energia SGPS SA. The Portuguese oil and gas company plans to install a total electrolyzer capacity of 100 megawatts at its refinery in the port city of Sines, south of Lisbon. The remaining nine units are scheduled to arrive by early 2026 and be operational by mid-2026. Annual production is projected at 15.000 tons of renewable hydrogen, replacing 20 percent of the gray hydrogen currently used at the Sines refinery. This conversion would reduce greenhouse gas emissions there by approximately 110.000 tons per year.
Plug Power's first 10-MW module has been delivered to Galp in Sines. Nine more will follow, bringing the total green hydrogen production capacity to 100 megawatts by the middle of next year. © Plug Power Inc. / Walter Branco
"Half of the total demand for gray hydrogen today comes from refineries and chemical plants," says Ronald Doesburg, Galp's Executive Vice President and responsible for the Industry division. "With our first 100 megawatts, we have begun the decarbonization of our refinery in Sines." According to previous statements, Galp now intends to produce hydrogen there using renewable energy. The electrolyzer is "just the first step"; the overall goal is to build a green hydrogen capacity of 600 to 700 megawatts.
Galp made the investment decision to build the facilities in September 2023. The total investment is €650 million. According to a March announcement, the European Investment Bank (EIB) is financing the project with €180 million.
Model for the refinery sector
The project is one of Plug's "largest in the world," the company says. "The system will serve as a model for what is possible across the European refining sector and the entire energy industry," says Andy Marsh, CEO of Plug. Plug's system, called the "GenEco electrolyzer array," integrates components manufactured on several continents, including the US and Europe. For the oil and gas sector, this project demonstrates that hydrogen can be deployed competitively at a scale to support the industry's decarbonization efforts.
In the second quarter, Plug Power reported increased demand for electrolyzers, led by more than 230 megawatts of GenEco programs in Europe, Australia, and North America, contributing approximately $45 million to total revenue. Several major projects are moving toward final investment decisions in 2026.
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The Portuguese oil company Galp plans to gradually replace gray hydrogen with green hydrogen at its refinery in Sines, south of Lisbon. © Galp Energia
