(Bilbao) – Spanish energy group Iberdrola SA has reached an agreement with BP and natural gas transmission system operator Enagas under which the companies will carry out a feasibility study to build the first phase of a green hydrogen production plant in the Valencia region at BP's factory. The installation of an electrolyser with an output of 20 megawatts on a BP property in the El Serrallo industrial area is being examined. The electrolyzer would be powered by electricity generated, among other things, by a 40-megawatt photovoltaic system.
The BP refinery in Castellón is reportedly the largest producer and consumer of hydrogen in the municipality of Valencia. This new project would replace the previously used hydrogen of uncertain origin that the refinery uses in its biofuel production process. Green hydrogen would reduce CO2 emissions by up to 24.000 tons per year. The project will also explore additional uses for the green hydrogen produced at the plant, such as supplying the heavy transport sector.
Investment costs 90 million euros
The 20-megawatt electrolyser could go into operation in 2023 with an investment of around 90 million euros, according to Iberdrola. In further steps, the electrolysis capacity could be increased to 115 megawatts, “which would be the largest green hydrogen project in the refining sector in Spain.” In addition to the electrolyzer, the project could also result in incentives for further investments estimated at around 70 million euros, for example in renewable energy systems.
The initiative, supported by local, regional, national and international public and private institutions, is in line with Valencia's Green Hydrogen Strategy and the Hydrogen Roadmap of the Spanish Ministry for Ecological Transition and Demographic Challenge (MITECO).
Photos
BP Castellon refinery, potential site of the 20 megawatt electrolyser / © BP
