- The project involves a €70M investment and aims to be operational by the second half of 2026.
- The 25 MW electrolyser will produce 2,800 tonnes of green hydrogen annually, reducing CO2 emissions by 23,000 tonnes.
- Construction will create 500 jobs and involve 25 Spanish companies.
- Funding includes €15M from EU's NextGenerationEU for renewable hydrogen development.
Project Overview
The joint venture between bp and Iberdrola España has commenced construction on Spain's largest green hydrogen plant, located next to the bp refinery in Castellón. The project, with a 25 MW capacity, is expected to be operational by the second half of 2026 and involves an investment of over €70 million.
Construction and Employment
The construction phase will create up to 500 jobs and involve approximately 25 Spanish companies. Initial work includes earthworks and developing a 20,000 m2 plot, followed by civil engineering works. The main equipment, including electrolysers, is expected to be installed in the second half of 2025.
Green Hydrogen Production
The plant will produce 2,800 tonnes of green hydrogen annually, replacing part of the grey hydrogen currently used by the refinery. This transition is expected to prevent the emission of approximately 23,000 tonnes of CO2 each year. The electrolyser will be powered by renewable electricity through a power purchase agreement with Iberdrola's wind and photovoltaic plants.
Future Applications and Funding
In later phases, the green hydrogen could be used in industries like ceramics and heavy transport in the Valencian Community, replacing natural gas. The project has received €15 million in funding from the Innovative Value Chain and Renewable Hydrogen Knowledge support programmes, part of the Spanish Recovery, Transformation and Resilience Plan, funded by the EU's NextGenerationEU.
Local Industry Involvement
The project demonstrates confidence in Spanish companies, with the transformer being manufactured by Imefy, a company based in Toledo. This involvement strengthens the renewable hydrogen value chain and creates industrial and innovation opportunities in the region.
