February 11, 2025 [Rigzone]- BP PLC and Iberdrola SA have begun construction on a 25-megawatt renewable energy-based hydrogen facility in Castellón, which the companies say will be the biggest green hydrogen plant in Spain.
To rise on about 20,000 square meters (215,278.21 square feet) of land next to a BP refinery, the project will source 200 gigawatt hours a year of electricity from Iberdrola’s solar and wind farms in the country via a power purchase agreement. Start-up is expected in the second half of 2026.
“The production of 2,800 tonnes of green hydrogen a year is expected to replace part of the gray hydrogen currently used by the refinery in its processes and is expected to prevent the emission of approximately 23,000 tonnes of CO2 a year, or the same amount as 5,000 cars produce in the same period”, said a statement on Iberdrola’s website announcing the commencement of construction works.
“In later phases of the project, the green hydrogen produced could also be used in key industries that are difficult to decarbonize in the Valencian Community, like ceramics, to replace the natural gas used in their processes, in chemical industries and in heavy transport”.
Spanish utility Iberdrola and British oil and gas major BP are investing over EUR 70 million ($72.12 million) in the project through their equally owned joint venture Castellon Green Hydrogen SL.
According to the owners the project has also secured EUR 15 million from the Spanish Recovery, Transformation and Resilience Plan, which is financed by the European Union.
“The start of construction of the largest green hydrogen plant in Spain is great news, because it allows us to see tangible progress in an important industrial decarbonization project”, said Carolina Mesa, BP vice president for hydrogen in Spain and new markets. “The bp refinery in Castellón consolidates itself as a model for the transformation of refineries into integrated energy hubs”.
Jorge Palomar Herrero, director of hydrogen development at Iberdrola, commented, “This project is already enabling the real development of the hydrogen value chain in our country with key equipment manufactured in Spain and contracting more than 25 local companies”.
Toledo-based Imefy Group recently bagged the contract for the supply of the project’s transformer, scheduled for delivery 2026.
“This award demonstrates the confidence of bp and Iberdrola, through the company created for the Castellon Green Hydrogen project, in Spanish companies in the development of the renewable hydrogen value chain, strengthening industry in the region and creating industrial and innovation opportunities in a growing market, acting as a lever for development”, the statement said.
Free Trial: Access 13,300 Tank Terminal and Production Facilities
13,300 tank storage and production facilities as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data
