(Castellón, Spain) – Spanish energy company Iberdrola SA and British BP plc have made the final investment decision to build a hydrogen production plant at BP's site in Castellón, southern Spain. The project has been in preparation for some time and was officially presented at an event.
Representatives of Iberdrola, BP and politicians in front of the administration building of the BP refinery in Castellón. © BP plc
The plan is to have an electrolysis capacity of 25 megawatts. Five modules with proton exchange membranes (PEM) and an output of five megawatts each will be installed in a container design from the US manufacturer Plug Power. The plants will be powered by electricity from renewable energies. A purchase agreement with Iberdrola España provides for the supply of 200 gigawatt hours per year from photovoltaic and wind power projects. BP wants to use the yield of around 2.800 tons of green hydrogen per year to replace some of the hydrogen produced from natural gas that is currently used by the refinery. Commissioning is scheduled for the second half of 2026.
Location of the refinery in the south of Spain in Castellón, Valencian Community. © BP plc
"Projects like Castellón show that with the cooperation of all the players in the sector and the appropriate incentives, it is possible to develop a new industrial model based on the green hydrogen value chain," says Mario Ruiz-Tagle, CEO of Iberdrola España. The project is being carried out by the joint venture Castellón Green Hydrogen SL, in which both companies have an equal share. The plant is receiving 15 million euros from the Spanish economic stimulus package (Plan de Reconstrucción, Transformation y Resilience). According to the information, up to 500 new direct jobs could be created during construction.
Additional capacities planned
In parallel with this 25-megawatt project, BP is exploring options for increasing capacity in the coming years. Back in March 2023, the oil company announced its intention to gradually develop electrolyzers with a total capacity of two gigawatts at its refinery by 2030. At that time, the investment was projected to reach two billion euros. In later phases, the green hydrogen produced could also be used in key industries in the Valencia region, such as in the ceramics sector as a substitute for natural gas, in the chemical industry, and in heavy-duty transport.
The Castellón refinery began operations in 1967. Today, it is said to be "the leading fuel supplier in both the Valencia region and the Balearic Islands". As part of a net zero strategy, BP has committed to fully decarbonising the refinery's activities.
Photo above
Electrolyzers will soon produce green hydrogen at the BP refinery in Castellón. © BP plc
