Iberdrola and bp continue to advance the development of green hydrogen as a key driver of electrification

Iberdrola España, the Iberdrola Group subsidiary in Spain, and bp have received approval from the Ministry for the Ecological Transition and the Demographic Challenge, through IDAE, for the reallocation to Castellón of up to €211 million in funding from the IPCEI Hy2USE programme. This will enable both companies to explore new opportunities to increase green hydrogen production at bp’s refinery in Castellón.

The initiative forms part of the alliance between Iberdrola and bp to promote new energy solutions that help replace the use of natural gas with domestically produced renewable energy in industrial processes. In addition, the green hydrogen produced could be allocated to sectors that are difficult to decarbonise, such as the ceramics and chemicals industries, strengthening the role of this technology in the energy transition.

The facility, which also involves the participation of the Valencia Energy Technology Institute (ITE) and has received an additional €15 million in funding through NextGenerationEU funds, is expected to begin producing green hydrogen before the end of the year and to become Spain’s largest operational green hydrogen plant in 2026.

This project reinforces Iberdrola’s commitment to innovation and the development of renewable solutions to accelerate the electrification of the economy.

You can read the full news story in the Iberdrola España Newsroom.