BP launches green hydrogen cluster in Spain
VALENCIA, March 1, 2023 – BP has announced plans to develop a green hydrogen cluster in Valencia, Spain, the British energy giant announced on Tuesday.
The project – dubbed HyVal – will be located at BP’s Castellón refinery and will see 2 GW of electrolysis capacity installed by 2030 to produce hydrogen.
The public-private initiative will be led by BP, with investments by the company of up to USD 2.12 billion.
The first phase is expected to be operational by 2027, which will produce 200 MW and up to 31,200 tonnes per year of hydrogen.
BP intends to produce between 500,000 tonnes and 700,000 tonnes of hydrogen from its global assets by 2030.
In September 2022, the EU approved spending USD 5.7 billion in EU public funding on hydrogen projects.
The bloc aims to produce 10 million tonnes of clean hydrogen per year and import a further 10 million tonnes by 2030.
In January 2022, Germany decided to connect to the proposed H2MED hydrogen pipeline linking production hubs in Portugal and Spain to France.
Portugal and Spain are considered ideal locations for green hydrogen production due to the Iberian region’s abundance of sunshine and wind.