BP and Iberdrola España Begin Construction of Spain’s Largest Green Hydrogen facility

BP and Iberdrola España have officially started the construction of Spain‘s largest green hydrogen facility. This green hydrogen facility will generate 25 MW of green hydrogen, and it is expected to create up to 500 jobs during construction, involving approximately 25 Spanish companies.

Project Overview and Key Milestones

Located near BP’s Castellón refinery, the project’s first phase focuses on earthworks on a 20,000 m² plot. Following that, civil works are expected to commence in the second quarter of 2025. In the next phase, which will take place in the second half of 2025, the installation of critical equipment, including electrolysers, will occur. These electrolysers will utilize renewable electricity to split water molecules and produce hydrogen at the green facility.

Carolina Mesa, BP’s VP of hydrogen for Spain, emphasized the project’s importance in driving industrial decarbonization. She explained, “This plant is a critical step in transforming the Castellón refinery into a leading integrated energy hub.” By establishing this green hydrogen facility, BP aims to be at the forefront of energy transition.

Environmental Benefits and Industry-Wide Impact

The €70 million project will replace grey hydrogen with 2,800 tonnes of green hydrogen annually. As a result, the refinery will reduce its CO2 emissions by 23,000 tonnes per year, equivalent to the emissions from 5,000 cars.

Additionally, the green hydrogen produced could help decarbonize sectors like ceramics, chemicals, and heavy transport, which are traditionally hard to decarbonize. In this way, the project will not only reduce emissions at the refinery but also benefit other industries in the Valencian Community.

The initiative, funded through the EU’s NextGenerationEU program, will support the broader goal of strengthening Spain’s hydrogen value chain. In turn, this could position Spain as a leader in the European hydrogen sector.

Support for Spanish Industry and Innovation

In addition to its environmental impact, the project will stimulate local industry. Spanish company Imefy has received the contract to manufacture and supply a critical transformer for the green hydrogen facility. This decision underscores BP and Iberdrola’s confidence in Spanish companies, further developing the renewable hydrogen value chain.

The plant, which is expected to begin operations in 2026, will not only contribute to Spain’s renewable energy transition but also foster innovation and job creation in the region. This green hydrogen facility represents a major milestone in the sustainable energy sector.