BP, utility Iberdrola and gas transportation firm Enagas are to conduct a feasibility steady on the construction of a green hydrogen production plant in Castellon, Spain. If the study is successful, the project could start operating from 2023.

115MW – Potental size of electrolyser

With an initial €90mn ($109mn) investment, the project would have a 20MW electrolyser powered by a number of renewable sources including a 40MW solar PV plant. The electrolysis capacity could increase to 115MW with further investment.

The project would provide green hydrogen to replace grey hydrogen used at the BP refinery in Castellon, reducing CO₂ emissions by 24,000 t/yr. It could also incentivise around €70mn of additional investment in new renewable energy facilities in the area, the firms say.

The initiative has the support of local, regional, and national institutions and is aligned with the Valencia region’s and Spain’s green hydrogen strategies.

“This is a further step in…BP Spain's ambition to lead the country's energy transition, so that it can become a European centre for the production and distribution of energy with a low carbon footprint,” says Carlos Barrasa, chairman of BP Spain.

Spain has the potential to become one of the most significant EU hubs for green hydrogen due to its high renewables capacity.

The government plans for its 112GW renewable capacity to rise to 133GW in 2025 and 161GW in 2030, according to its Integrated Plan for Energy and Climate.

Madrid approved a roadmap in October 2020 that would see it invest €1.5bn in green hydrogen projects as well as enact other regulatory measures, with the goal of installing 4GW of electrolysers by 2030.

---

Author: Tom Young