The joint venture between bp and Iberdrola Spain announced the start of work on the country’s largest green hydrogen project, with an electrolysis capacity of 25 MW. The plant will be located next to the BP refinery in Castellón and represents a key step forward in industrial decarbonization.
The first phase includes the earthmoving and urbanization of an area of approximately 20,000 m². Construction is expected to generate up to 500 jobs and involve the participation of some 25 Spanish companies.
Electrolyzers and renewable energy as a central focus
Civil works will begin in the second quarter of the year, while the next major milestone will be the receipt and installation of the main equipment, including the electrolyzers, scheduled for the second half of 2025.
The 25 MW electrolyzer will be powered through a renewable power purchase agreement (PPA) supplied by Iberdrola from wind and photovoltaic farms, enabling the production of green hydrogen through electrolysis of water with electricity from renewable sources.
Industrial impact and emissions reduction
The plant, developed through Castellón Green Hydrogen SL with an investment of more than 70 million euros, will come into operation in the second half of 2026. An annual production of 2,800 tons of green hydrogen is expected.
This production will make it possible to replace part of the gray hydrogen currently used in the refinery and avoid the emission of some 23,000 tons of CO₂ per year. In later phases, green hydrogen could extend its use to industrial sectors that are difficult to decarbonize, such as ceramics, the chemical industry and heavy transport in the Valencia Region.
Source and Photo: Iberdrola