bp, Iberdrola and Enagás plan to develop a 20 MW hydrogen project in Valencia

bp, Iberdrola, and Enagas have reached an agreement to study the feasibility of building, at bp's plant in Castellón, the first phase of the largest green hydrogen production facility in the region of Valencia.

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

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 20 megawatt (MW) electrolyzer could start operating in 2023, with an investment of approximately EUR90 million (US$108.20 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.