BP has set out plans to develop a green hydrogen cluster with up to 2GW of electrolyser capacity at its Castellon refinery in Spain’s Valencia region by 2030.

The project, called Hyval, will also include the development of biofuels production capacity and renewable power. BP says it could invest up to €2bn into Castellon by 2030.

Green hydrogen generated by BP’s Castellon project will be used to replace grey hydrogen consumed by the refinery and as a feedstock for sustainable aviation fuel production. Biofuels production at Castellon is expected to increase threefold, to 650,000t/yr, by 2030.

“We see Hyval as key to Castellon’s transformation and critical to supporting decarbonisation across the Valencia region” Guevara, BP

Green hydrogen will also be aimed at decarbonising hard-to-abate industries in the Valencia region such as the ceramics and chemicals sectors. It will also be used for the production of green ammonia and in heavy transport applications. Utilisation of the green hydrogen could ultimately deliver CO₂ cuts of about 300,000t/yr across all applications, BP says.

The project will help to position Valencia as a green hydrogen exporter to the rest of Europe, BP says.

“We see Hyval as key to Castellon’s transformation and critical to supporting decarbonisation across the Valencia region. We aim to develop up to 2GW of electrolysis capacity by 2030 for green hydrogen production, helping decarbonise our operations and (those of our) customers,” says Andres Guevara, president of BP Energia Espana.

The oil major will lead Hyval but it will be open to potential participation from companies from various local industries, public institutions and research and training centres. The project will help position Valencia as a green hydrogen exporter to the rest of Europe, BP says.

Electrolyser capacity at Castellon will be developed in two phases. Phase one will see the deployment of 200MW by 2027, with an expected output of 31,200t/yr. Phase two will take capacity up to 2GW.

Hydrogen hotspot

BP’s plan for Castellon come as Spain emerges as a hotspot for green hydrogen investments in Europe, with developers attracted by its low-cost renewables resource as well as national and regional targets for production and end-use, and its potential as an exporter.

Plans and initiatives announced in the last couple of weeks include projects to be developed by Spanish utility Acciona and US technology firm Plug Power, and by Spanish companies Cepsa and Fertiberia.

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Author: Stuart Penson