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 developing at its Sines refinery in 2026, the business, which is mostly an oil manufacturer and refiner, stated on Thursday.

Last year Galp got in 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 tons each year.

It will change waste materials, such as utilized cooking oils, into eco-friendly biodiesel and biojet fuel, also known as sustainable air travel fuel (SAF), using green hydrogen produced by an electrolyser powered by wind or solar energy.

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

Galp is likewise investing 250 million euros in a 100 megawatt (MW) electrolyser unit to produce green hydrogen to power the refinery in Sines. ($1 = 0.9637 euros) (Reporting by Sergio Goncalves;-RRB-