The joint venture between bp and Iberdrola, Castellón Green Hydrogen S.L., has completed 90% of the assembly phase for what will be the largest green hydrogen plant in operation in Spain. The plant, equipped with a 25 MW electrolyzer supplied by Plug Power, already has 100% of its equipment on site and is preparing to begin testing in May 2026.
The project’s goal is to replace part of the gray hydrogen currently used in industrial processes, reducing up to 23,000 tons of CO₂ per year, a figure equivalent to the emissions of 5,000 vehicles.
Collaboration between bp and Iberdrola
Castellón Green Hydrogen S.L. is the result of an equally shared alliance between bp and Iberdrola, reinforcing both companies’ commitment to decarbonization. The plant will be powered by 200 GWh per year of 100% renewable energy, generated by Iberdrola’s wind and solar farms in Spain, through a power purchase agreement (PPA).
Julio Castro, CEO of Iberdrola Energía Sostenible España, highlighted that it is “a real example of industrial electrification, which allows for emission reduction and strengthens energy security.”
Technical Characteristics of the Plant
The plant is designed to produce 2,800 tons of green hydrogen annually, with a 25 MW electrolyzer, which is expected to be the most powerful in operation in Spain. The total investment for the project exceeds 70 million euros and has involved the work of approximately 25 Spanish companies during its development.
Plug Power, a leader in hydrogen technology, is the supplier of the electrolyzer system, a central component for converting renewable electricity into hydrogen through electrolysis.
Institutional support and European funding
The green hydrogen plant has received 15 million euros in aid from the program for the Innovative Value Chain and Knowledge in Renewable Hydrogen, within Spain’s Recovery, Transformation and Resilience Plan. These funds come from the European instrument NextGenerationEU.
The Technological Institute of Energy (ITE) also participates, contributing research and innovation capabilities.
Scalability of Green Hydrogen
bp and Iberdrola have already expressed their intention to expand the green hydrogen production capacity at the Castellón refinery, leveraging the experience gained in this first phase.
Carolina Mesa, bp’s Vice President of Hydrogen for Europe and MENA, noted that “this advancement consolidates the refinery as a national benchmark in decarbonization and energy transition.”
Source: bp