# Green Hydrogen Initiative at BP’s Castellón Refinery
In a significant step towards industrial decarbonization, British energy giant BP has partnered with Spanish utility company Iberdrola for a groundbreaking green hydrogen project at its Castellón refinery in Spain. This ambitious initiative marks a pivotal moment in BP’s broader strategy to reduce carbon emissions and transition the Castellón refinery into an integrated energy hub.
## A Joint Venture for a Greener Future
BP and Iberdrola have established a 50-50 joint venture, Castellón Green Hydrogen S.L., to oversee the development and execution of this innovative project. The partnership has already secured a significant financial boost from the European Union’s Recovery, Transformation, and Resilience Plan, with a grant of €15 million allocated through NextGenerationEU. The Technology Institute of Energy (ITE) is also contributing to the venture, underscoring the collaborative and multi-stakeholder approach to achieving sustainable energy goals.
## Capacity and Scope of the Project
The green hydrogen facility, set to be operational by the second half of 2026, will feature a 25 MW electrolyzer that converts renewable energy into green hydrogen. Specifically, the plant will harness 200 GWh of renewable electricity annually from Iberdrola’s solar and wind projects through a power purchase agreement (PPA). This electrolyzer will comprise five modules of 5 MW containerized proton exchange membrane (PEM) technology supplied by Plug Power, a leading developer of green hydrogen solutions.
## Project Goals and Impact
The primary goal of this project is to produce approximately 2,800 tons of green hydrogen annually, which will replace a portion of the grey hydrogen currently generated from natural gas at the Castellón refinery. This substitution is expected to reduce CO2 emissions by around 23,000 tons per year—equivalent to removing 5,