bp and Iberdrola Approve 25MW Green Hydrogen Plant in Castellón
- The 25 MW green hydrogen plant at Castellón refinery will be operational by late 2026.
- The project received 15 million euros in funding from the EU.
- The plant will produce around 2,800 tons of green hydrogen annually, reducing CO2 emissions by 23,000 tons per year.
- Up to 500 new direct jobs will be created during construction.
Project Overview
bp and Iberdrola have approved the construction of a 25 MW green hydrogen plant at bp's Castellón refinery, set to be operational by the second half of 2026. This project is the first joint venture between the two companies under Castellón Green Hydrogen S.L.
Funding and Support
The initiative has secured 15 million euros in funding from the Innovative Value Chain and Renewable Hydrogen Knowledge call of the Spanish Recovery, Transformation, and Resilience Plan, with financial support from the European Union's NextGenerationEU program.
Technical Details
The plant will convert 200 GWh/year of renewable energy from Iberdrola into green hydrogen using a 25 MW electrolyzer powered by a power purchase agreement (PPA). The electrolyzer will feature 5 modules of 5 MW containerized proton exchange membrane (PEM) technology supplied by Plug Power.
Environmental Impact
The green hydrogen produced will meet European RFNBO standards and support the transition of bp’s Castellón refinery into an integrated energy hub. The plant is expected to produce around 2,800 tons of green hydrogen annually, replacing part of the grey hydrogen currently used and reducing CO2 emissions by 23,000 tons per year.
Economic and Industrial Benefits
The project is anticipated to create up to 500 new direct jobs during its construction phase. In future phases, the green hydrogen could be used in hard-to-abate industries in the Valencia region, such as ceramics, chemical industries, and heavy transport.
Future Prospects
bp is exploring opportunities to increase the plant's capacity in the coming years. The project aligns with a recent letter of intent signed with the Valencian Government to transform bp's Castellón refinery into an integrated energy hub, reinforcing the region's leadership in the energy transition.