bp, Iberdrola cooperate for largest green hydrogen plant in Spain

The companies have launched a 50:50 joint venture to develop the project and support the decarbonization of bp's refinery operations in Castellón.

bp and Iberdrola have given the green light for construction of a 25 MW green hydrogen project at bp's Castellón refinery which is expected to be operational in the second half of 2026. 

This is the first hydrogen project jointly undertaken by both companies through Castellón Green Hydrogen S.L., a 50:50 joint venture. The project was presented at an official event to publicly celebrate the signing in July 2024 of the final investment decision between bp and Iberdrola.

The 25 MW electrolyzer will be powered by renewable electricity through a power purchase agreement (PPA) signed with Iberdrola that will supply 200GWh/year coming from Iberdrola’s photovoltaic and wind projects.

“We are focused on value, progressing only the best projects in our portfolio that can create additional value through integration and fully meet our investment hurdles. This also demonstrates the strength of partners combining their strengths to advance a nascent energy source that has the potential to play a meaningful role in the decarbonising industry,” said Felipe Arbelaez, bp’s senior vice president, hydrogen & CCS.

This joint venture will support the transition of bp’s Castellón refinery into an integrated energy hub. It’s expected that around 2,800 annual tons of green hydrogen could substitute part of the gray hydrogen currently used by the refinery.