Largest green hydrogen project in Valencia region

Largest green hydrogen project in Valencia region


Spain BP, Iberdrola and Enagas will study the feasibility of building the first phase of the largest green hydrogen production facility in the region of Valencia, at BP’s plant in Castellón.

The companies will evaluate the installation of a 20 megawatt (MW) electrolyser for the production of green hydrogen on land owned by BP in the El Serrallo industrial estate. The electrolyser would run on renewable energy produced by a 40 MW photovoltaic plant, among other sources.

Green instead of grey hydrogen

The BP refinery in Castellón is the largest producer and consumer of hydrogen in the Valencian Community. This new project would replace the grey hydrogen that the refinery uses in its biofuel production process. The use of green hydrogen would reduce CO2 emissions by up to 24,000 tonnes per year, contributing to the plant’s decarbonization.

The project will also explore additional value-added uses for the green hydrogen produced at the plant, such as supplying the heavy transport sector and contributing to the decarbonization of other energy-intensive industries in the area.

€90 million investment

The 20-megawatt (MW) electrolyser could start operating in 2023, with an investment of approximately €90 million. In further stages, the electrolysis capacity could be increased to 115 MW, becoming the largest green hydrogen project in the refining sector in Spain and the most ambitious in the Valencian Community.

In addition to the electrolyser, the project could incentivise an estimated additional investment of around €70 million in new renewable energy facilities and contribute significantly to the economic and industrial recovery of the area, resulting in the creation of high quality, value-added jobs.

Advancing decarbonization

Through this collaboration, BP, Iberdrola and Enagás would advance their respective decarbonization strategies for the industrial and transport sectors in the Valencian Community.

The initiative, which has the support of important local, regional, national and international public and private institutions, is aligned with the Green Hydrogen Strategy of the Valencian Community, as well as with the Hydrogen Roadmap of Spain’s Ministry for Ecological Transition and the Demographic Challenge. It is also part of the call for European Next Generation Funds and a clear proof of the commitment of its partners to advance in the decarbonization of the economy.