The facility will produce 2,800t of green hydrogen annually. Credit: Iberdrola, S.A.

bp and Iberdrola España have begun construction of a 25MW green hydrogen plant in Castellón, Spain with an investment of more than €70m ($72.2m).

The development is being undertaken by a 50:50 joint venture between bp and Iberdrola España, named Castellón Green Hydrogen.

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The hydrogen plant is Spain’s largest and will produce 2,800 tonnes (t) of green hydrogen annually, replacing some of the grey hydrogen currently used by the bp refinery in Castellón.

Future phases may extend the use of green hydrogen to other industries in the Valencian community, such as ceramics and chemical industries, and to heavy transport.

The plant will become operational in the second half of 2026 and reduce CO₂ emissions by 23,000t per year.

The first phase of the Castellón Green Hydrogen project includes earthworks and the development of a 20,000m² plot adjacent to the bp refinery in Castellón, with civil works set for the second quarter of 2025.

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The installation of the main equipment, including electrolysers, is scheduled for the second half. This equipment will produce green hydrogen through electrolysis, separating hydrogen from water using renewable electricity.

The power required by the hydrogen plant will be supplied by Iberdrola from its photovoltaic and wind farms under a power purchase agreement.

bp vice president of hydrogen for Spain and new markets Carolina Mesa stated: “The start of construction of the largest green hydrogen plant in Spain is great news, because it allows us to see tangible progress in an important industrial decarbonisation project.

“The bp refinery in Castellón consolidates itself as a model for the transformation of refineries into integrated energy hubs.”

The project, in collaboration with the Instituto Tecnológico de la Energía, has secured €15m in funding from Spanish and European Union (EU) programmes.

Iberdrola Hydrogen Development director Jorge Palomar Herrero said: “This project is already enabling the real development of the hydrogen value chain in our country with key equipment manufactured in Spain and contracting more than 25 local companies.

“The project also brings in 200 gigawatt hours per year of renewable energy from Iberdrola’s wind and photovoltaic plants in Spain and meets all EU requirements to ensure that the hydrogen produced is green hydrogen.”

bp and Iberdrola España awarded the contract for manufacturing and supplying a 37MVA transformer to Imefy. This will be supplied in the first quarter of 2026.