bp and Iberdrola green light 25MW green hydrogen plant in Spain

bp and Iberdrola have given the green light for construction of a 25MW green hydrogen project at bp's Castellón refinery which is expected to be operational in second half of 2026.

This is the first hydrogen project jointly undertaken by bp and Iberdrola through Castellón Green Hydrogen S.L., a joint venture equally owned by both companies.

The project will see a 25MW electrolyser powered by renewable electricity through a power purchase agreement (PPA) signed with Iberdrola that will supply 200GWh/year.

The electrolyser will include 5 modules of 5MW containerised proton exchange membrane (PEM) technology, which will be supplied by Plug Power, a manufacturer of green hydrogen solutions.

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The green hydrogen will support the transition of bp’s Castellón refinery into an integrated energy hub. It’s expected around 2,800 annual tonnes of green hydrogen could substitute part of the grey hydrogen currently used by the refinery, and as such is expected to result in avoiding the emission of 23,000 tonnes of CO2 per year.

Olvido Moraleda, president of bp Energía España commented in a release: “This project marks a milestone in our strategy and reflects the importance of collaboration, both with other companies that share our vision, such as Iberdrola, and in the public-private sphere. In this way, we not only advance the transformation of our infrastructure in Castellón, but also aim to strengthen the economic fabric and industrial capacity of the entire Valencia region.”

Mario Ruiz-Tagle, CEO of Iberdrola Spain, added: “Projects like Castellón show that, with the collaboration of all agents in the sector and the appropriate incentives, it is possible to develop a new industrial model based on the green hydrogen value chain. The green hydrogen economy is emissions free, electrified, attracts investment and creates quality jobs in the region. This is the true energy transition."

This initiative, which includes the participation of the Technology Institute of Energy (ITE), has been awarded funding of €15 million ($16.6 million) from the Innovative Value Chain and Renewable Hydrogen Knowledge plan of the Spanish Recovery, Transformation, and Resilience Plan, with funding allocated by NextGenerationEU of the European Union.

In subsequent phases of the project, the green hydrogen produced could also be used in key hard-to-abate industries in the Valencia region, such as the ceramics sector replacing natural gas used in its processes, in chemical industries and in heavy transport.

The launch of this project was announced after bp recently signed a letter of intent with the Valencian Government to create a joint working committee to oversee the transformation of bp's refinery in Castellón into an integrated energy hub.

Originally published on powerengineeringint.com