bp and Iberdrola have decided to invest in a new 25MW green hydrogen plant at BP’s refinery in Castellón, Spain, set to begin operations in 2026.
This project, developed through a joint venture called Castellón Green Hydrogen S.L., aims to reduce carbon dioxide (CO2) emissions by replacing grey hydrogen currently used in the refinery.
The plant will receive €15 million (£12.6m) in funding from the Spanish Recovery, Transformation and Resilience Plan, supported by NextGenerationEU funds.
The green hydrogen produced is expected to avoid the emission of 23,000 tonnes of CO2 per year and create up to 500 jobs during its construction.
bp plans to use the hydrogen to support its decarbonisation strategy at the Castellón refinery, while Iberdrola will provide renewable electricity to power the plant.
The electrolyser, using proton exchange membrane technology, will produce hydrogen by splitting water with renewable electricity.
