Iberdrola España and bp get greenlight to reallocate $240M to green hydrogen project

In Spain, Iberdrola España 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 €211 million in funding from the Hy2USE IPCEI program 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 decarbonizing 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 €15 million through the NextGenerationEU program, 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.