bp and Iberdrola have chosen Toledo-based manufacturer Imefy to supply the power transformer for Spain’s largest renewable hydrogen production facility. The 25 MW green hydrogen plant is located at bp’s Castellón refinery. It is set to play a critical role in advancing Spain’s green hydrogen sector.

The Castellón Green Hydrogen Plant: A Key Step Toward Decarbonization

Imefy’s contract includes producing, delivering, and overseeing the installation of a three-phase power transformer with a 37 MVA capacity and a 66/30 kV transformation ratio. The transformer is scheduled for delivery in the first quarter of 2026. This marks an important milestone in the facility’s development.

The €70 million Castellón green hydrogen plant, developed in partnership by Iberdrola España and bp, is expected to begin operations in late 2026. Beyond supporting bp’s refinery, future phases of the project could expand hydrogen use to industries in the Valencian Community. These industries include ceramics, chemicals, and heavy transport. This transition will help reduce reliance on natural gas and lower carbon emissions in hard-to-abate sectors.

The plant will feature a 25 MW electrolyser powered by renewable energy from Iberdrola’s solar and wind projects. This energy is secured through a power purchase agreement that guarantees 200 GWh of renewable electricity per year. The green hydrogen production process, based on water electrolysis, will meet European Renewable Fuels of Non-Biological Origin (RFNBO) standards.

Once operational, the plant is expected to produce 2,800 tonnes of green hydrogen annually. This will replace a portion of the grey hydrogen currently produced from natural gas. As a result, CO₂ emissions will be reduced by 23,000 tonnes annually. This is equivalent to taking 5,000 cars off the road. The project has also secured €15 million in funding from Spain’s Recovery, Transformation and Resilience Plan. This plan is supported by the European Union’s NextGenerationEU programme.