BP, Iberdrola take FID on Spain’s largest green hydrogen plant

Spain

CASTELLON, September 12, 2024 – BP and Iberdrola have taken a final investment decision on constructing a 25-MW green hydrogen project at bp’s Castellón refinery in Spain, the companies said on Thursday.

The project is expected to be operational in H2 2026.

The companies formed a 50-50 local joint venture to undertake such projects, Castellón Green Hydrogen, with the Castellón refinery being the first.

The green hydrogen produced will support the decarbonisation of bp’s refinery operations in Castellón and prevent the emission of 23,000 tonnes of CO2 per year.

The initiative received EUR 15 million in funding from Spain’s Recovery, Transformation and Resilience Plan, with funds allocated via NextGenerationEU.

“BP’s first investment decision for an industrial scale project is an important step forward for our hydrogen business,” bp senior vice-president for hydrogen and CCS Felipe Arbelaez said.

“We are focused on value, progressing only the best projects in our portfolio that can create additional value through integration and fully meet our investment hurdles. This also demonstrates the strength of partners combining their strengths to advance a nascent energy source that has the potential to play meaningful role in decarbonising industry. Castellón refinery can lead the way with its transformation.”

Spain has become an investment leader in green hydrogen, with a targeted installed capacity of 11 GW from electrolysers by 2030.

Photo courtesy of BP.