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 developing at its Sines refinery in 2026, the company, which is mostly 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 Grease (HVO) plant, which will have a production capacity of 270,000 metric lots per year.

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

Galp stated in a statement it got 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 leading edge of developing low-carbon services necessary 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-