BP and Iberdola begins constructing the 25 MW green hydrogen facility
BP and Iberdrola have initiated construction on a 25 MW green hydrogen facility at BP's Castellón refinery, scheduled for completion in the latter half of 2026. This marks the first collaborative hydrogen venture between the two companies under their joint venture, Castellón Green Hydrogen S.L. The project, in collaboration with the Technology Institute of Energy (ITE), secured a 15 million euro grant from Spain's Recovery, Transformation, and Resilience Plan funded by NextGenerationEU.
Millán Garcia-Tola, Iberdrola's Global Director of Hydrogen, emphasized that the project builds on their commitment to green hydrogen as a critical element in industrial decarbonization. The plant will transform 200 GWh/year of Iberdrola’s renewable energy into green hydrogen, aiding BP’s decarbonization goals and exemplifying successful collaboration focused on long-term environmental commitments.
Olvido Moraleda, President of BP Energía España, described the project as a strategic milestone that leverages public-private partnerships to enhance Castellón’s infrastructure and bolster the economic and industrial capacity of the Valencia region. Similarly, Mario Ruiz-Tagle, CEO of Iberdrola Spain, noted that such initiatives demonstrate the potential of renewable hydrogen to foster a new industrial model in the region, supporting emission-free energy transitions, attracting investments, and creating quality jobs.
The facility will feature a 25 MW electrolyzer powered by a power purchase agreement (PPA) with Iberdrola, utilizing electricity from Iberdrola’s solar and wind projects. This electrolyzer will consist of five 5 MW modules using containerized proton exchange membrane (PEM) technology from Plug Power. Annually, the plant is expected to produce approximately 2,800 tons of green hydrogen, potentially replacing the grey hydrogen from natural gas at the refinery, reducing CO2 emissions by around 23,000 tons—equivalent to removing 5,000 cars from the roads each year.
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Alongside this project, BP is exploring opportunities to expand capacity and, in future phases, possibly extend green hydrogen supply to other hard-to-abate sectors like ceramics, chemical industries, and heavy transport within the Valencia region. This initiative coincides with a broader strategy, highlighted by a recent agreement with the Valencian Government to transform the Castellón refinery into a leading energy hub. Additionally, Iberdrola has been actively forming strategic alliances to promote decarbonization across various sectors.
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