BP and Iberdrola have commenced the construction of Spain’s largest green hydrogen plant, a 25MW facility located next to BP’s refinery in Castellón, Spain.
The project, which is expected to generate up to 500 jobs during construction, will involve around 25 Spanish companies. The first phase is focused on earthworks and land preparation, with civil work slated to begin in the second quarter of 2025.
The plant will utilize electrolysis to produce green hydrogen, separating hydrogen and oxygen molecules from water using electricity sourced from renewable energy. The electrolyser will be powered by 200 GWh annually through a power purchase agreement (PPA) with Iberdrola, which will supply renewable energy from its wind and photovoltaic projects.
“This project marks great progress in the industrial decarbonization of Spain,” said Carolina Mesa, BP’s vice president of hydrogen, Spain, and new markets. “BP’s refinery in Castellón will serve as a model for transforming refineries into integrated energy hubs.”
The green hydrogen production is expected to reduce CO2 emissions by approximately 23,000 tonnes per year, which is equivalent to the emissions from 5,000 cars.
Iberdrola’s director of hydrogen development, Jorge Palomar Herrero, highlighted the project’s impact, noting that it is helping to develop a hydrogen value chain in Spain. “The plant will be supplied with 200 GWh a year of renewable energy from Iberdrola’s wind and photovoltaic plants,” he added.
The green hydrogen facility, with an investment of more than €70 million, is being developed through Castellón Green Hydrogen SL, a joint venture equally owned by BP and Iberdrola Spain. It is expected to be operational in the second half of 2026.
