BP, Iberdrola and Enagás Study the Development of the Largest Green Hydrogen Project in the Valencian Community

By April 28, 2021 4   min read  (714 words)

April 28, 2021 |

Fuel cells works, hydrogen, h2, Spain, Iberdrola, bp, fuel cells
  • This project would be located at the bp refinery in Castellón, where a 20 megawatt (MW) electrolyzer would be built, powered by renewable energy produced, among other generation sources, by a 40 MW photovoltaic plant.
  • In later phases, the electrolysis capacity could be increased to 115 MW, which would make it the largest hydrogen project in the refining sector in Spain
  • This project would reduce emissions from the refinery by up to 24,000 tCO 2 / year, contributing to the decarbonization of the region’s industrial corridor

bp, Iberdrola and Enagás have reached an agreement to study the development of the first phase of the largest green hydrogen production project in the Valencian Community, which would be developed at the bp plant in Castellón.

The purpose of this agreement is to evaluate the installation of a 20 megawatt (MW) electrolyzer for the generation of green hydrogen on land owned by bp in the El Serrallo industrial estate. The electrolyzer would work with renewable energy produced, among other generation sources, by a 40 MW photovoltaic plant.

The bp refinery in Castellón is the largest producer and consumer of hydrogen in the Valencian Community. This new project would make it possible to replace gray hydrogen, which the refinery uses in its processes to produce biofuels, with green hydrogen. In this way, CO 2 emissions would be reduced by up to 24,000 tons per year, thus contributing to their decarbonisation.

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


The 20 megawatt (MW) electrolyzer could start operating in 2023, with an investment of approximately € 90 million. In later phases, the electrolysis capacity could be increased to 115 MW, making it the largest green hydrogen generation project in the refining sector in Spain and the most ambitious in the Valencian Community.

In addition to the electrolyzer, the project could encourage an estimated additional investment of around 70 million euros in new renewable energy facilities and contribute significantly to the economy and industry in the area, resulting in the creation of high quality and value jobs added.


Through this collaboration, bp, Iberdrola and Enagás would advance their respective strategies to decarbonise the industrial and transport sectors in the Valencian Community, a region in which the three companies are deeply rooted.

In the words of Carlos Barrasa, president of bp Spain, “with this project bp reinforces its commitment to hydrogen as a fuel for the future, since it will play a fundamental role in the decarbonization of the energy, industry and transport sectors, and especially those difficult or expensive to electrify. It is, therefore, a further advance in bp’s strategy to transform itself into an integrated energy company, as well as in bp Spain’s ambition to lead the country’s energy transition, so that it can become a European production center and energy distribution with a low carbon footprint ”.

Ángeles Santamaría, CEO of Iberdrola Spain, explained that “we have the opportunity to lead this technology, which will help make the commitment to climate neutrality a reality, by acting on sectors that are difficult to decarbonize, and promote a sector with enormous creative potential of industry and employment. The alliance of companies willing to face the transformation of their production processes with companies such as Iberdrola, with the capacity to execute and supply green energy, together with a chain of suppliers and incentives from European funds, will contribute to advancing technological maturity of green hydrogen and to turn it into a competitive solution for the medium-term decarbonisation of industry and heavy transport ”.

According to the CEO of Enagás, Marcelino Oreja, “this initiative fits perfectly with the criteria followed by the projects promoted by Enagás: that they contribute to decarbonisation and a just and inclusive transition, that they be tractors in their entire value chain, that help the development of the Spanish industry and that generate sustainable employment. Collaboration between companies, administrations and institutions is essential for these projects to become a reality, and this is a clear example of joint collaboration ”.

Source: Iberdrola

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