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

Last year Galp entered into a 75%-25% joint venture 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 loads annually.

It will transform waste products, such as used cooking oils, into eco-friendly biodiesel and biojet fuel, likewise called sustainable aviation fuel (SAF), utilizing green hydrogen produced by an electrolyser powered by wind or solar energy.

Galp said in a declaration it received on Wednesday the three reactors to process biofuels, which will allow the HVO system to "produce SAF and biodiesel in 2026 ... putting Galp at the leading edge of establishing low-carbon services necessary for the energy transition".

Galp is also 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-