bp and Iberdrola Begin Construction of Spain’s Largest Green Hydrogen Plant in Castellón

This green hydrogen plant could create up to 500 new jobs during its construction

(IN BRIEF) A joint venture between bp and Iberdrola España has commenced construction of Spain’s largest green hydrogen plant, set to begin operations by 2026. Located next to the bp refinery in Castellón, this 25 MW plant is expected to create 500 jobs during construction and involve approximately 25 Spanish companies. The plant will use renewable electricity to produce green hydrogen through electrolysis, with a capacity to produce 2,800 tonnes of green hydrogen annually. This will significantly reduce CO2 emissions at the refinery and has the potential to support decarbonisation in other sectors such as ceramics and transport. The project also benefits from European funding under the NextGenerationEU initiative, further driving Spain’s green transition.

(PRESS RELEASE) BILBAO, 8-Feb-2025 — /EuropaWire/ — A joint venture between bp and Iberdrola España has officially kicked off the construction of Spain’s largest green hydrogen plant, marking a significant milestone in the country’s industrial decarbonisation efforts. The 25 MW facility, located next to the bp refinery in Castellón, is set to create up to 500 jobs during its construction phase and will involve around 25 Spanish companies. This ambitious project, with an investment exceeding €70 million, is expected to be operational by the second half of 2026.

The initial phase of construction involves preparing a 20,000 m² plot adjacent to the refinery, followed by the commencement of civil engineering works, scheduled for the second quarter of the year. In the latter half of 2025, the plant will receive its key equipment, including electrolysers, which will play a crucial role in producing green hydrogen. These electrolysers will use electricity generated from renewable sources to separate hydrogen from water through electrolysis, laying the foundation for sustainable hydrogen production.

Carolina Mesa, Vice President of Hydrogen for Spain and New Markets at bp, shared her enthusiasm: “The beginning of construction on Spain’s largest green hydrogen plant is a remarkable step forward in our industrial decarbonisation strategy. The bp refinery in Castellón is becoming a model for transforming refineries into integrated energy hubs.”

Jorge Palomar Herrero, Director of Hydrogen Development at Iberdrola, highlighted the broader impact: “This project is essential for the development of the hydrogen value chain in Spain, using locally manufactured equipment and contracting over 25 regional companies. The green hydrogen produced will be powered by renewable energy from Iberdrola’s Spanish wind and solar farms and meets all EU standards for green hydrogen.”

The facility’s electrolyser will be connected to Iberdrola’s renewable energy portfolio, ensuring the plant operates on green electricity through a power purchase agreement (PPA). Once completed, the plant is expected to produce 2,800 tonnes of green hydrogen annually, which will replace part of the grey hydrogen used by the refinery and help cut CO2 emissions by approximately 23,000 tonnes per year – equivalent to the emissions of 5,000 cars.

The green hydrogen produced at the Castellón site could eventually be used in other hard-to-decarbonise industries in the Valencian Community, such as ceramics, chemicals, and heavy transport. The project also received €15 million in funding from the Spanish Recovery, Transformation, and Resilience Plan, backed by the European Union’s NextGenerationEU initiative.

The partnership between bp and Iberdrola reinforces their leadership in the growing hydrogen sector, a key energy vector in the global push for industrial decarbonisation. Furthermore, the involvement of Spanish companies in the project underscores the confidence both companies have in Spain’s renewable energy and innovation sectors.

Media Contact:

Tel: +34 91 784 32 32
comunicacioncorporativa@iberdrola.es

SOURCE: Iberdrola