bp and Iberdrola Begin Construction on 25 MW Green Hydrogen Project, Creating Up to 500 Jobs
The joint venture between bp and Iberdrola España has officially begun construction on Spain’s largest green hydrogen plant, a 25 MW facility in Castellón. The project, developed through Castellón Green Hydrogen S.L., represents a €70 million investment and is expected to create up to 500 jobs during construction, involving 25 Spanish companies in its development.
Project Milestones and Construction Timeline
- Phase 1: Site preparation and earthworks on a 20,000 m² plot adjacent to bp’s Castellón refinery are already underway. Civil engineering works will commence in Q2 2025.
- Phase 2: The arrival and installation of main equipment, including electrolysers, is scheduled for the second half of 2025.
- Operational Date: The plant is set to begin producing 2,800 tonnes of green hydrogen annually in the second half of 2026.
Advancing Industrial Decarbonization
Carolina Mesa, bp’s Vice President of Hydrogen for Spain and New Markets, highlighted the project’s importance:
“The start of construction of Spain’s largest green hydrogen plant marks a significant step in industrial decarbonization. This project strengthens the Castellón refinery’s transformation into an integrated energy hub.”
Jorge Palomar Herrero, Director of Hydrogen Development at Iberdrola, emphasized its contribution to the Spanish hydrogen industry:
“This project is already supporting the development of Spain’s hydrogen value chain, with key equipment manufactured domestically and over 25 local companies involved. It will also integrate 200 GWh of renewable energy from Iberdrola’s wind and solar farms.”
The facility will use renewable electricity sourced via a Power Purchase Agreement (PPA) with Iberdrola. It will replace part of the grey hydrogen currently used at the refinery, reducing CO₂ emissions by 23,000 tonnes per year—equivalent to removing 5,000 cars from the roads.
Future Expansion and Industry Applications
Beyond its initial use at the Castellón refinery, the green hydrogen produced could later support hard-to-decarbonize industries in the Valencian Community, including:
- Ceramics and chemical industries
- Heavy transport sectors
This initiative, in collaboration with the Instituto Tecnológico de la Energía (ITE), has received €15 million in funding from Spain’s Recovery, Transformation, and Resilience Plan, supported by NextGenerationEU funds.
Commitment to Spanish Industry
bp and Iberdrola have demonstrated their commitment to Spanish companies by awarding the manufacture and supply of the plant’s transformer to Imefy, a Toledo-based firm. Imefy will deliver a 37 MVA three-phase power transformer by Q1 2026, further strengthening Spain’s renewable hydrogen value chain.
By integrating domestic expertise and cutting-edge technology, the Castellón Green Hydrogen project aims to be a catalyst for innovation, industrial growth, and decarbonization in Spain’s energy sector.
