**BP and Iberdrola Engage in Groundbreaking Green Hydrogen Initiative at Castellón Refinery**
In a significant step towards decarbonizing the oil and gas industry, British multinational BP and Spanish utility company Iberdrola have partnered to develop a cutting-edge green hydrogen project at BP’s Castellón Refinery in Spain. This innovative endeavor not only underscores the companies’ commitment to sustainability but also highlights their strategic efforts to transform the Castellón refinery into an integrated energy hub.
**Project Overview**
The partnership, encapsulated under the joint venture Castellón Green Hydrogen S.L., has secured a Final Investment Decision (FID) in late July 2024. This decision kickstarts the construction of a 25 MW electrolyzer, which will be powered by renewable electricity sourced from Iberdrola’s photovoltaic and wind projects. The power purchase agreement (PPA) between BP and Iberdrola will supply 200 GWh of renewable energy annually, ensuring compliance with European standards for green hydrogen production.
**Technology and Components**
The 25 MW electrolyzer will comprise five modules of 5 MW containerized proton exchange membrane (PEM) technology supplied by Plug Power, a leader in green hydrogen solutions. This advanced technology will electrolyze water using only renewable electricity, producing approximately 2,800 tons of green hydrogen annually. This production volume is anticipated to replace a significant portion of the grey hydrogen currently generated from natural gas at the refinery, thereby reducing CO2 emissions by approximately 23,000 tons annually.
**Decarbonization Strategy and Economic Impact**
This green hydrogen initiative is a crucial component of BP’s broader decarbonization strategy, aiming to transition the Castellón refinery into a carbon-neutral operation. The project’s anticipated completion in the second half of 2026 aligns with BP’s goal of achieving carbon neutrality across its global operations by 2050.