bp and Iberdrola have approved the construction of a 25 MW green hydrogen plant at bp’s Castellón refinery in Spain, set to be operational by the second half of 2026. This is the first joint venture between the two companies under Castellón Green Hydrogen S.L., and was publicly celebrated at an event marking the final investment decision in July 2024.
The project has secured €15 million in funding from the Spanish Recovery Plan through the NextGenerationEU initiative and involves collaboration with the Technology Institute of Energy (ITE). The electrolyzer, powered by 200 GWh/year of renewable energy from Iberdrola’s photovoltaic and wind projects, will use Plug Power’s PEM technology to produce approximately 2,800 tons of green hydrogen annually. This green hydrogen will replace part of the grey hydrogen currently used at the refinery, reducing CO2 emissions by 23,000 tons per year—equivalent to the emissions from 5,000 cars.
Felipe Arbelaez, bp’s Senior Vice President of Hydrogen & CCS, highlighted the importance of the project in bp’s hydrogen strategy and decarbonization efforts. Iberdrola’s Global Director of Hydrogen, Millán Garcia-Tola, emphasized their commitment to promoting green hydrogen for industrial decarbonization.
The project could create up to 500 jobs during its construction and is seen as a key step toward transforming bp’s Castellón refinery into an integrated energy hub. Future phases may expand capacity to supply green hydrogen to other industries in the Valencia region, such as ceramics and heavy transport.
This initiative follows a recent agreement between bp and the Valencian Government to position the region as a leader in the energy transition, reinforcing Spain’s role in the growing green hydrogen economy.
