The joint venture between bp and Iberdrola has started construction of the largest green hydrogen plant in Spain. The plant is located in Castellón and will have a 25 MW electrolyser powered by renewable energy, allowing the production of up to 2,800 tonnes of green hydrogen per year.
Iberdrola and bp build green hydrogen plant
The first phase of the project focuses on the development of the 20,000 m² site next to the bp refinery in Castellón. Civil works will begin in the second quarter of the year, while the installation of the main equipment, such as the electrolysers, is planned for the second half of 2025.
The green hydrogen produced at this plant will partially replace the grey hydrogen used at the refinery, reducing CO₂ emissions by approximately 23,000 tonnes per year. In addition, in future phases, it is expected to be used in sectors such as the ceramics, chemical and heavy transport industries.
The project is being developed by Castellón Green Hydrogen , and has an investment of over 70 million euros and has received 15 million euros in funding from the Spanish Recovery, Transformation and Resilience Plan. During its construction, it is estimated that up to 500 jobs will be created and more than 25 local companies will participate.
In addition, bp and Iberdrola have awarded the contract to manufacture the plant’s transformer to the Spanish company Imefy , strengthening the renewable hydrogen value chain in the country. The initiative reinforces bp and Iberdrola’s leadership in the production of renewable hydrogen and their commitment to the energy transition. The electrolyser will operate using electricity from wind and solar farms, ensuring its certification as green hydrogen under European Union standards.
The progress and execution of the work. Source: Iberdrola
With the plant scheduled to come into operation in the second half of 2026, it is emerging as a model for the transformation of refineries into sustainable energy centres and a decisive step in reducing the carbon footprint of Spanish industry.
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Source and photos: Iberdrola
