**BP’s Ambitious Green Hydrogen Initiative at Castellón Refinery: A Milestone Towards Decarbonization**
In a significant step towards reducing carbon emissions, bp plc has partnered with Iberdrola España SA to establish a large-scale green hydrogen project at its Castellón refinery in Spain. This joint venture, formed under the banner of Castellón Green Hydrogen SL, marks a crucial moment in bp’s broader decarbonization strategy, aiming to achieve carbon neutrality by 2050 globally.
**Project Details and Timeline**
The project, set to enter operation by the second half of 2026, involves the construction of a 25 MW electrolyzer at bp’s 104,500 b/d refinery in Castellón. This capacity was approved following a final investment decision (FID) in late July 2024. The electrolyzer, supplied by Plug Power, will utilize renewable electricity through a power purchase agreement (PPA) with Iberdrola España. Specifically, the agreement will secure 200 GWh/year from Iberdrola’s photovoltaic and wind projects.
**Green Hydrogen Production and Emissions Reduction**
The electrolyzer will be equipped with five modules of 5 MW containerized proton exchange membrane (PEM) technology. Once operational, it is expected to produce approximately 2,800 tonnes of green hydrogen per year. This green hydrogen will substitute part of the existing grey hydrogen produced from natural gas, thereby reducing CO2 emissions by 23,000 tonnes annually. This reduction is equivalent to removing emissions from about 5,000 cars over the same period.
**Funding and Collaboration**
The project has secured €15 million in funding from Spain’s Recovery, Transformation, and Resilience Plan, supported by the European Union’s NextGenerationEU initiative. Collaboration between bp and Iberdrola is facilitated through public-private partnerships, including participation from Spain’s Technology Institute of