Author: PPD Team Date: 12/02/2025
The joint venture (JV) between bp and Iberdrola España has commenced construction of a 25 MW green hydrogen plant in Spain.
The initial phase includes earthworks and the development of a 20,000 square meter plot of land next to the bp refinery in Castellón. The first major equipment, including electrolysers, will arrive and be installed in the second half of 2025. These electrolysers will produce green hydrogen by separating hydrogen and oxygen molecules from water using electricity from renewable sources.
The total investment in the project exceeds €70 million. The development is being carried out through Castellón Green Hydrogen S.L., a joint venture between bp and Iberdrola España.
The plant is expected to be operational by the second half of 2026. The electrolyser will be powered by renewable electricity through a power purchase agreement (PPA) supplied by Iberdrola’s photovoltaic and wind farms.
It is expected to produce 2,800 tonnes of green hydrogen annually, replacing part of the grey hydrogen used by the refinery, preventing approximately 23,000 tonnes of CO2 emissions each year.
This green hydrogen could later be used in industries like ceramics, chemical processing, and heavy transport in the Valencian Community.
This marks the first joint hydrogen project between Iberdrola and bp, following the approval of the plant’s construction in September 2024. The plant is expected to create up to 500 jobs during construction, involving approximately 25 Spanish companies.
Photo credit: Iberdrola