Spanish energy producer Iberdrola and UK-based oil and gas company BP have announced that they have received approval for the construction of a 25 MW green hydrogen plant at the latter’s refinery in the city of Castellón in Spain through their joint venture Castellón Green Hydrogen S.L. The project has been granted a funding of €15 million from Spain’s Recovery, Transformation and Resilience Plan.
According to the statement, the plant, which will have a 25 MW electrolyzer and is expected to be operational by the second half of 2026, will convert 200 GWh of renewable energy per year that will be supplied by Iberdola’s photovoltaic and wind projects into about 2,800 mt of green hydrogen per year, cutting emissions by 23,000 mt per year. Also, the green hydrogen may partly substitute grey hydrogen, which is produced from natural gas, used by the refinery. As a result, the project will allow BP’s Castellón refinery to become an integrated energy hub.
Additionally, BP will explore the options to increase the green hydrogen production capacity and to use green hydrogen in hard-to-abate industries in the Valencia region.