bp and Iberdrola have officially launched a significant joint venture to build a 25 MW green hydrogen plant at bp’s refinery in Castellón, Spain. The project, aimed at supporting the decarbonization of the refinery, marks the first hydrogen collaboration between the two energy giants under Castellón Green Hydrogen S.L., a 50:50 joint venture. The plant is expected to be operational by the second half of 2026 and will play a crucial role in reducing CO2 emissions by 23,000 tons annually—equivalent to the emissions of 5,000 cars.
The project has secured €15 million in funding from the Spanish Recovery, Transformation, and Resilience Plan, backed by NextGenerationEU. It promises to create up to 500 new jobs during the construction phase, providing a boost to the local economy. The green hydrogen plant will convert 200 GWh of Iberdrola’s renewable energy annually, helping bp reduce its reliance on grey hydrogen, which is currently produced from natural gas.
“This marks bp’s first large-scale green hydrogen project and is a pivotal step in our strategy to decarbonize industry,” said Felipe Arbelaez, bp’s Senior Vice President for Hydrogen & CCS. Iberdrola’s Global Director of Hydrogen, Millán Garcia-Tola, emphasized the project’s role in promoting green hydrogen as a key driver for industrial decarbonization.
The electrolyzer will use Plug Power’s proton exchange membrane (PEM) technology and will comply with European regulations for green hydrogen production. Beyond bp’s refinery operations, the hydrogen could later be used in other hard-to-abate industries in the Valencia region, such as ceramics and chemical sectors, as well as heavy transport.
The project is the latest development in bp and Iberdrola’s strategic alliance, following their collaboration to accelerate electric mobility in Spain and Portugal.
