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 mainly an oil manufacturer and refiner, stated on Thursday.

Last year Galp entered into 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 capability of 270,000 metric heaps each year.

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

Galp stated in a statement it received on Wednesday the three reactors to process biofuels, which will enable the HVO unit to "produce SAF and biodiesel in 2026 ... placing Galp at the leading edge of establishing low-carbon solutions important for the energy transition".

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-