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

The purpose of this agreement is to evaluate the installation of a 20-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 tpy, 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.

A PROJECT OF THE FUTURE

The 20-MW electrolyzer 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 electrolyzer, the project could incentivize an estimated additional investment of around €70 MM 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.

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.