Iberdrola And bp Advance Green Hydrogen Development As A Key Enabler Of Electrification

Iberdrola España, the Iberdrola Group's subsidiary in Spain, and bp have received approval from Spain’s Ministry for Ecological Transition and the Demographic Challenge, through the Institute for Energy Diversification and Saving (IDAE), to reallocate up to €211M in funding from the Hy2USE IPCEI programme to their project in Castellón. The funding will allow the companies to explore opportunities to expand renewable hydrogen production at bp’s refinery in Castellón.

The project is part of the strategic partnership between Iberdrola and bp to develop new energy solutions that help industrial customers replace natural gas with renewable energy produced in Spain. Renewable hydrogen could also play an important role in decarbonising hard-to-abate sectors such as ceramics and chemicals, further strengthening its contribution to the energy transition.

The facility, which also involves the Energy Technology Institute (ITE) in Valencia and has secured an additional €15M through the NextGenerationEU programme, is expected to begin producing renewable hydrogen before the end of this year. By 2026, it is set to become the largest operational green hydrogen plant in Spain.

The project reflects Iberdrola’s commitment to innovation and to scaling up renewable technologies that support the electrification of the economy.