BP, Iberdrola and energy company Enagás have agreed to a feasibility study with a view to creating the largest green hydrogen project in the Valencia region of Spain.
The project would be located in the BP refinery in Castellón, where a 20MW electrolyser will be built, powered by renewable energy produced, among other sources, by a 40MW photovoltaic plant.
In later stages, the electrolysis capacity could be ramped up to 115MW, becoming the largest green hydrogen project in the refining sector in Spain, Iberdrola said.
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 decarbonisation.
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 decarbonisation of other energy-intensive industries in the area.
The 20MW electrolyser could start operating in 2023, with an investment of approximately €90m.
In further stages, the electrolysis capacity could be increased to 115MW, becoming the largest green hydrogen project in the refining sector in Spain and the most ambitious in the Valencian Community.
In addition to the electrolyser, the project could incentivise an estimated additional investment of around €70m 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.
BP Spain chairman Carlos Barrasa said: “With this project, BP reinforces its commitment to hydrogen as a fuel of the future, as it will play a fundamental role in the decarbonisation of the energy, industry and transport, especially those that are difficult or expensive to electrify.
“This is therefore a further step 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 centre for the production and distribution of energy with a low carbon footprint.”
Iberdrola España chief executive Ángeles Santamaría added: “With the opportunity to lead this technology, we will contribute to making climate neutrality a reality, by acting in sectors that are difficult to decarbonise while boosting a clean industry with enormous potential for job creation.
“This is an alliance of companies willing to tackle the transformation of their production processes with Iberdrola, which has capacity to produce and supply green energy, and the participation of the supply chain and the incentives of European funds.
“Together, we will contribute to advancing the technological maturity of green hydrogen, turning it into a competitive solution for the medium-term decarbonisation of industry and heavy transport.”