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 in 2026, the business, which is mostly an oil producer and refiner, stated on Thursday.

Last year Galp participated in a 75%-25% joint venture with Japan's Mitsui to invest 400 million euros ($415 million) in the Hydrogenated Grease (HVO) plant, which will have a production capability of 270,000 metric loads annually.

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

Galp said in a statement it got on Wednesday the three reactors to process biofuels, which will allow the HVO system to "produce SAF and biodiesel in 2026 ... positioning Galp at the forefront of establishing low-carbon solutions essential for the energy shift".

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