BP and Iberdrola have made a final investment decision for a 50:50 joint venture to develop a 25MW green hydrogen project.

The green hydrogen in Spain will support the decarbonisation of BP's refinery operations in Castellón and is is expected to be operational in second half of 2026.

The 25MW electrolyser will be powered by renewable electricity through a power purchase agreement (PPA) signed with Iberdrola that will supply 200GWh/year coming from Iberdrola’s photovoltaic and wind projects. The electrolyser will include five modules of 5MW containerised proton exchange membrane (PEM) technology, which will be supplied by Plug Power. The green hydrogen produced by the electrolysis of water powered by renewable electricity will comply with European requirements to produce green hydrogen (Renewable Fuels of Non-Biological Origin, RFNBO) and will support the transition of the refinery into an integrated energy hub. It is expected around an annual 2,800 tonnes of green hydrogen could substitute part of the grey hydrogen currently used by the refinery (currently produced from natural gas) and as such is expected to result in avoiding the emission of 23,000 tons of CO2 per year.

This is the first hydrogen project jointly undertaken by BP and Iberdrola through Castellón Green Hydrogen, a joint venture equally owned by both companies.

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