© Iberdrola
bp and Iberdrola have commenced construction on Spain’s largest green hydrogen project, a 25 MW facility in Castellón. The joint venture, Castellón Green Hydrogen SL, is investing over €70 million in the initiative, which is expected to be operational by the second half of 2026. The project is set to generate up to 500 jobs during the construction phase, involving approximately 25 Spanish companies.
Project Timeline and Key Milestones
The first stage of the project includes earthmoving and site preparation on a 20,000 m² area near bp’s Castellón refinery. Civil works are scheduled to begin in Q2 2025. The next major milestone will be the delivery and installation of key equipment, including electrolyzers, in the second half of 2025. These electrolyzers will use renewable electricity from Iberdrola’s wind and solar farms to produce green hydrogen through electrolysis.
Green Hydrogen’s Role in Decarbonization
Once operational, the plant will produce 2,800 tons of green hydrogen annually, reducing CO2 emissions by approximately 23,000 tons per year. This hydrogen will replace a portion of the gray hydrogen currently used in BP’s refining processes. Future phases could see the hydrogen supplied to hard-to-decarbonize industries in the Valencian Community, including ceramics, chemicals, and heavy transport.
Strategic Industry and Economic Impact
The project has secured €15 million in funding from Spain’s Recovery, Transformation, and Resilience Plan under the EU’s NextGenerationEU program. It also marks a strategic investment in Spanish manufacturing, with Imefy, a Toledo-based company, contracted to supply a key 37 MVA power transformer. Delivery is set for Q1 2026.
Iberdrola and BP’s Hydrogen Leadership
Both companies are reinforcing their leadership in green hydrogen, a crucial energy vector for industrial decarbonization. Iberdrola’s Hydrogen Development Director, Jorge Palomar Herrero, emphasized the project’s role in advancing Spain’s hydrogen value chain and ensuring compliance with EU green hydrogen standards. Additionally, BP’s Castellón refinery is being positioned as a model for transforming refineries into integrated energy hubs.
Next to that, Carolina Mesa, bp’s Vice President of Hydrogen for Spain and New Markets, said: “The start of construction of Spain’s largest green hydrogen plant is excellent news as it represents a concrete step forward in a project that is crucial for industrial decarbonisation. bp’s Castellón refinery is set to become a model for transforming refineries into integrated energy hubs.”
