bp and Iberdrola approve Spain’s largest green hydrogen plant in Castellón

bp and Iberdrola have officially made a final investment decision for the construction of a 25 MW green hydrogen plant at bp’s refinery in Castellón, Spain. This joint venture marks a significant step in the development of the green hydrogen sector, supporting bp’s decarbonisation strategy. Scheduled to be operational in the second half of 2026, the plant is expected to avoid the emission of 23,000 tons of CO2 annually, equivalent to the emissions of 5,000 cars. The plant will create up to 500 direct jobs during construction.

The hydrogen produced will support the decarbonisation of bp’s refinery operations, which currently rely on grey hydrogen derived from natural gas. The plant will utilise 200 GWh/year of renewable energy sourced from Iberdrola’s photovoltaic and wind projects, with Plug Power supplying the electrolyzer technology.

As part of its long-term vision, global energy major bp plans to further expand capacity and apply green hydrogen to key hard-to-abate industries like ceramics and chemicals in the Valencia region.

Iberdrola is a Spanish multinational company and one of the largest energy companies in the world. It primarily focuses on renewable energy, particularly wind power, and is a global leader in this sector. Iberdrola operates in over 40 countries, including Spain, the UK, the United States, Brazil, and Mexico, providing electricity to millions of people.

The project is part of the Spanish government’s NextGenerationEU (NGEU) funding initiative, receiving EUR15 million (USD16.5 million) in support. The NGEU is a major recovery plan initiated by the European Union to help member states recover from the economic and social impacts of the COVID-19 pandemic. It is a temporary recovery instrument, amounting to EUR750 billion (USD827 billion), aimed at supporting the rebuilding of a post-COVID Europe that is greener, more digital, and more resilient.