BP and Iberdrola Break Ground on Spain’s Largest Green Hydrogen Facility
BP and Iberdrola have commenced construction on Spain’s largest green hydrogen plant, marking a major milestone in the country’s clean energy transition. The 25MW facility, located in Castellón, is poised to become a key driver of industrial decarbonization, while also stimulating local economic growth.
A Project Driving Job Creation and Sustainability
The development of the plant is expected to create up to 500 jobs during the construction phase, with 25 Spanish companies actively participating in its build-out. The initial phase, which involves earthworks and land preparation, is already underway near BP’s Castellón refinery. Civil construction is scheduled to begin in Q2 of this year, followed by the installation of major equipment, including electrolysers, in the second half of 2025.
The project represents a significant step toward reducing industrial emissions, with the plant anticipated to prevent approximately 23,000 tonnes of CO₂ emissions annually—equivalent to taking 5,000 cars off the road each year.
Electrolysis-Powered Green Hydrogen Production
At the heart of the facility will be advanced electrolysis technology, which enables the separation of hydrogen and oxygen molecules from water using renewable electricity. This clean hydrogen production process will be powered by a power purchase agreement (PPA) with Iberdrola, which will supply 200GWh of renewable electricity annually from its photovoltaic and wind projects in Spain.
BP’s Vice President of Hydrogen, Spain, and New Markets, Carolina Mesa, emphasized the significance of the project:
“The start of construction of the largest green hydrogen plant in Spain is great news, because it allows us to see tangible progress in an important industrial decarbonization project. BP’s refinery in Castellón is a model for the transformation of refineries into integrated energy hubs.”
Similarly, Jorge Palomar Herrero, Director of Hydrogen Development at Iberdrola, highlighted the project’s contribution to the local economy and the development of a domestic hydrogen supply chain:
“This project is already enabling the development of a hydrogen value chain in our country with key equipment manufactured in Spain and providing work for more than 25 local companies.”
He further noted that the plant will be fully compliant with EU regulations, ensuring that the hydrogen produced meets the strict green hydrogen classification criteria.
€70 Million Investment in Clean Energy
The €70 million project is being jointly developed by BP and Iberdrola Spain through Castellón Green Hydrogen SL, a company equally owned by both developers. The plant is expected to become operational in the second half of 2026, cementing Spain’s position as a leader in renewable hydrogen production.
A Pivotal Moment for Spain’s Green Hydrogen Sector
As global industries pivot toward clean energy solutions, green hydrogen is expected to play a crucial role in decarbonizing sectors such as heavy industry, transport, and refining. With Spain setting ambitious targets for hydrogen infrastructure development, BP and Iberdrola’s initiative marks a defining moment in the country’s renewable energy strategy. #GreenHydrogen #RenewableEnergy #HydrogenEconomy #Decarbonization #SustainableFuture #EnergyTransition.
Follow the Clean Energy Transition
For more updates on green hydrogen and industrial decarbonization, follow
