The joint venture between bp and Iberdrola España has officially commenced construction on Spain’s largest green hydrogen project, featuring a 25 MW electrolyser. The initiative is set to create up to 500 jobs during the construction phase, with around 25 Spanish companies participating in the project, according to the press release.
The first phase of the project involves land preparation and earthworks on a 20,000-square-meter site adjacent to bp’s refinery in Castellón. Civil works are scheduled to begin in the second quarter of this year. The next major milestone will be the delivery and installation of key equipment, including electrolysers, expected in the second half of 2025. These electrolysers will produce green hydrogen through electrolysis, a process that uses renewable electricity to split water into hydrogen and oxygen molecules.
Carolina Mesa, bp’s Vice President of Hydrogen for Spain and New Markets, highlighted the significance of the project: “The start of construction on Spain’s largest green hydrogen plant marks a major step forward in industrial decarbonization. The bp refinery in Castellón is transforming into an integrated energy hub, setting a benchmark for sustainable energy innovation.”
Jorge Palomar Herrero, Director of Hydrogen Development at Iberdrola, emphasized the project’s broader impact: “This initiative is driving the development of Spain’s hydrogen value chain, with key equipment manufactured locally and over 25 Spanish companies involved. The plant will be powered by 200 GWh/year of renewable energy from Iberdrola’s wind and solar farms, ensuring compliance with EU green hydrogen standards.”
The project, developed through Castellón Green Hydrogen S.L., a 50-50 joint venture between bp and Iberdrola España, represents an investment of over €70 million. Once operational in the second half of 2026, the plant will produce 2,800 tonnes of green hydrogen annually, replacing a portion of the grey hydrogen currently used at the refinery. This shift is expected to reduce CO2 emissions by approximately 23,000 tonnes per year, equivalent to removing 5,000 cars from the road.
In future phases, the green hydrogen produced could also support hard-to-decarbonize industries in the Valencian Community, such as ceramics, chemicals, and heavy transport, by replacing natural gas in their processes.
The project has received €15 million in funding from Spain’s Recovery, Transformation, and Resilience Plan, supported by the European Union’s NextGenerationEU program. The initiative also involves collaboration with the Instituto Tecnológico de la Energía (ITE), further strengthening its technological and innovative foundations.
Spanish Industry Takes Center Stage
The project underscores the confidence in Spanish companies to drive the renewable hydrogen value chain. Recently, Imefy, a Toledo-based firm, was awarded the contract to manufacture and supply a 37 MVA power transformer for the plant. The transformer, with a 66/30 kV transformation ratio, will be delivered in the first quarter of 2026.
This partnership highlights the role of local industries in advancing renewable energy technologies, fostering regional development, and creating opportunities in a rapidly growing market. By leveraging Spanish expertise, bp and Iberdrola are not only advancing their leadership in the hydrogen sector but also contributing to the country’s energy transition and industrial innovation.
The Castellón green hydrogen plant is a testament to the potential of hydrogen as a key driver of industrial decarbonization and a cleaner energy future.
